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A Mechanism for Inducing Cooperation in Noncooperative Environments: Theory and Applications

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  • CHRISTOPHER J. ELLIS
  • ANNE VAN DEN NOUWELAND

Abstract

We construct a market‐based mechanism that induces players in a noncooperative game to make the same choices as characterize cooperation. We then argue that this mechanism is applicable to a wide range of economic questions and illustrate this claim using the problem of “The Tragedy of the Commons.”

Suggested Citation

  • Christopher J. Ellis & Anne Van Den Nouweland, 2006. "A Mechanism for Inducing Cooperation in Noncooperative Environments: Theory and Applications," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 23-47, January.
    • Handle: RePEc:bla:jpbect:v:8:y:2006:i:1:p:23-47
    DOI: 10.1111/j.1467-9779.2006.00251.x
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    Cited by:

    1. Kanjilal, Kiriti & Munoz-Garcia, Felix, 2018. "Common Pool Resources with Endogenous Equity Shares," Working Papers 2018-4, School of Economic Sciences, Washington State University.
    2. Rahmi İlkılıç, 2011. "Networks of common property resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 105-134, May.
    3. Kanjilal Kiriti & Muñoz-García Félix, 2020. "Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.

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