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Hugging Trees: Claiming de Facto Property Rights by Blockading Resource Use

  • Peter Burton

    ()

This paper explores conflicts between two groups,“the industry” and “theenvironmentalists”, over whether an indivisible resource (e.g., an ancient tree) should be harvested or preserved. In a complete information war ofattrition the environmentalists' willingness to blockade harvest attemptsmay control resource use as effectively as if they held property rights. Optimal government intervention will override this ability for somebenefit/cost combinations but may augment it for other combinations.Introducing uncertainty about the environmentalists' benefits results inextended disputes and consequent lack of efficiency. Governmentintervention for welfare reasons generally reduces these efficiencylosses. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000017276.60009.bf
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Article provided by Springer & European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 27 (2004)
Issue (Month): 2 (February)
Pages: 135-163

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Handle: RePEc:kap:enreec:v:27:y:2004:i:2:p:135-163
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  1. Fudenberg, Drew & Tirole, Jean, 1986. "A Theory of Exit in Duopoly," Econometrica, Econometric Society, vol. 54(4), pages 943-60, July.
  2. Marc Bilodeau & Al Slivinski, . "Toilet Cleaning and Department Chairing: Volunteering a Public service," Public Economics 9405001, EconWPA.
  3. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
  4. Bliss, Christopher & Nalebuff, Barry, 1984. "Dragon-slaying and ballroom dancing: The private supply of a public good," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 1-12, November.
  5. Roth, David, 1996. "Rationalizable Predatory Pricing," Journal of Economic Theory, Elsevier, vol. 68(2), pages 380-396, February.
  6. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July.
  7. Kornhauser, Lewis & Rubinstein, Ariel & Wilson, Charles, 1989. "Reputation and Patience in the 'War of Attrition.'," Economica, London School of Economics and Political Science, vol. 56(221), pages 15-24, February.
  8. Barry Nalebuff & John G. Riley, 1984. "Asymmetric Equilibrium in the War of Attrition," UCLA Economics Working Papers 317, UCLA Department of Economics.
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