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Coalition formation in fisheries with potential regime shift

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  • Miller, Steve
  • Nkuiya, Bruno

Abstract

A system can undergo rapid regime shift in which the growth of natural resources suddenly and permanently declines. We examine how the threat of such a shift alters the strategic management of a common pool renewable resource. We consider exogenous and endogenous threats and examine their effects on both incentives to join a coalition and harvest decisions. We find that an exogenous threat of reduced resource growth may cause the coalition to grow in size, and, perhaps of most interest, we identify conditions under which members of the stable coalition reduce harvest while non-members increase harvest in response to the threat. In contrast, an exogenous threat of total stock collapse may destabilize coalitions, resulting in higher harvest from former members, but reduced harvest by non-members. When the threat of either type of shift is endogenous, the threat of regime shift can induce stable coalitions with more than two members. In particular, we identify cases in which the first best (full cooperation) is sustained as an equilibrium outcome. Finally, we find that the relation between the magnitude of the shift and the size of stable coalitions may be negative.

Suggested Citation

  • Miller, Steve & Nkuiya, Bruno, 2016. "Coalition formation in fisheries with potential regime shift," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 189-207.
  • Handle: RePEc:eee:jeeman:v:79:y:2016:i:c:p:189-207
    DOI: 10.1016/j.jeem.2016.05.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christopher Costello & Bruno Nkuiya & Nicolas Querou, 2017. "Extracting spatial resources under possible regime shift," Working Papers 17-07, LAMETA, Universitiy of Montpellier.
    2. Diekert, Florian K., 2017. "Threatening thresholds? The effect of disastrous regime shifts on the non-cooperative use of environmental goods and services," Journal of Public Economics, Elsevier, vol. 147(C), pages 30-49.
    3. Mao, Liang, 2017. "A Note on Stable Cartels," MPRA Paper 83982, University Library of Munich, Germany, revised 18 Jan 2018.
    4. repec:gam:jgames:v:8:y:2017:i:3:p:30-:d:104982 is not listed on IDEAS
    5. Mao, Liang, 2017. "Designing International Environmental Agreements under Participation Uncertainty," MPRA Paper 79145, University Library of Munich, Germany.

    More about this item

    Keywords

    Regime shifts; Partial cooperation; Dynamic games; Renewable resources; Uncertainty;

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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