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Identities in the Commons: The Dynamics of Norms and Social Capital

Listed author(s):
  • Bulte Erwin

    ()

    (Wageningen University & Tilburg University)

  • Horan Richard D.

    ()

    (Michigan State University)

This paper provides a formal analysis of the evolution of cooperation in the management of common property resources. We develop a dynamic model that includes moral norms or a sense of 'identity,' and show that cooperation may but need not be an equilibrium outcome in the absence of intervention by a managing agency or punishment by peers. We demonstrate that outside intervention has ambiguous effects when identity matters it may reduce welfare of the agents harvesting the stock.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 10 (2010)
Issue (Month): 1 (February)
Pages: 1-35

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Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:13
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