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Renewable resource management, user heterogeneity, and the scope for cooperation

  • Erdlenbruch, Katrin
  • Tidball, Mabel
  • van Soest, Daan

Cooperation can increase the efficiency of commonly-owned renewable resource use. However, received knowledge is that, absent side payments, cooperative solutions are more difficult to achieve the less homogenous the agents involved. We revisit this claim by analyzing how differences in the opportunity costs of resource harvesting affect the scope for Pareto-improving contracts, where contracting is with respect to the type of technology used. We find that the scope for cooperation is largest for intermediate levels of heterogeneity.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 64 (2008)
Issue (Month): 3 (January)
Pages: 597-602

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Handle: RePEc:eee:ecolec:v:64:y:2008:i:3:p:597-602
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. Todd L. Cherry & Stephan Kroll & Jason F. Shogren, 2003. "The Impact of Endowment Heterogeneity and Origin on Public Good Contributions: Evidence from the Lab," Working Papers 03-05, Department of Economics, Appalachian State University.
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  8. Benhabib, Jess & Radner, Roy, 1988. "Joint Exploitation Of A Productive Asset: A Game-Theoretic Approach," Working Papers 88-17, C.V. Starr Center for Applied Economics, New York University.
  9. Gardner, Roy & Herr, Andrew & Ostrom, Elinor & Walker, James A., 2000. "The power and limitations of proportional cutbacks in common-pool resources," Journal of Development Economics, Elsevier, vol. 62(2), pages 515-533, August.
  10. Laukkanen, Marita, 2003. "Cooperative and non-cooperative harvesting in a stochastic sequential fishery," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 454-473, March.
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