Appropriation of Common Access Natural Resources through Exploration: The Relevance of the Open-Loop Concept
In this paper, the open-loop equilibrium is rehabilitated as a sensible concept for analyzing common property situations. In a model of natur al resource exploration in which the sole motivation to explore prior to extraction arises from a strategic incentive to preempt competito rs, a consistency rule to the exploration game is applied under which the commonality of reserves is preserved even if strategies are open -loop. Under this rule, the so often claimed efficiency of the common property open-loop equilibrium is lost. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Volume (Year): 29 (1988)
Issue (Month): 2 (May)
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References listed on IDEAS
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