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Promoting cooperation in resource dilemmas: Theoretical predictions and experimental evidence

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  • Botelho, Anabela
  • Dinar, Ariel
  • Pinto, Lígia M. Costa
  • Rapoport, Amnon

Abstract

Whereas experimental studies of common pool resource (CPR) dilemmas are frequently terminated with collapse of the resource, there is considerable evidence in real-world settings that challenges this finding. To reconcile this difference, we propose a two-stage model that links appropriation of the CPR and provision of public goods in an attempt to explain the emergence of cooperation in the management of CPRs under environmental uncertainty. Benchmark predictions are derived from the model, and subsequently tested experimentally under different marginal cost–benefit structures concerning the voluntary contribution to the provision of the good. Our results suggest that the severity of the appropriation problem may significantly be mitigated by the presence of an option for voluntarily contributing a fraction of the income surplus from the appropriation phase to the provision of the public good.

Suggested Citation

  • Botelho, Anabela & Dinar, Ariel & Pinto, Lígia M. Costa & Rapoport, Amnon, 2015. "Promoting cooperation in resource dilemmas: Theoretical predictions and experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 40-49.
    • Handle: RePEc:eee:soceco:v:54:y:2015:i:c:p:40-49
    DOI: 10.1016/j.socec.2014.11.007
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    Cited by:

    1. Shunji Oniki & Haftu Etsay & Melaku Berhe & Teklay Negash, 2020. "Improving Cooperation among Farmers for Communal Land Conservation in Ethiopia: A Public Goods Experiment," Sustainability, MDPI, vol. 12(21), pages 1-16, November.
    2. Benjamin Ouvrard & Stefan Ambec & Arnaud Reynaud & Stéphane Cezera & Murudaiah Shivamurthy, 2022. "Sharing rules for a common-pool resource in a lab experiment," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(3), pages 605-635, October.
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    4. Nie, Zihan & Yang, Xiaojun & Tu, Qin, 2020. "Resource scarcity and cooperation: Evidence from a gravity irrigation system in China," World Development, Elsevier, vol. 135(C).

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    More about this item

    Keywords

    Experimental economics; Common pool resources; Appropriation; Public good provision; Environmental uncertainty;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods

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