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Does the Existence of a Public Good Enhance Cooperation among Users of Common-Pool Resources?

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  • Jan Tore Solstad
  • Kjell Arne Brekke

Abstract

Without resorting to the folk theorem or to altruistic preferences, we demonstrate that the problem of overharvesting among individually rational harvesters in a local commons vanishes if the harvesters share, and voluntarily contribute to, some public good. Formulating the model as a two-stage sequential game, the harvesting of a renewable natural resource takes place at the first stage. The observed harvesting surplus is then used for buying private goods and contributing to public goods at the second stage. In this setting, the model shows that the harvesters share an individual objective of maximizing total harvesting surplus.

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  • Jan Tore Solstad & Kjell Arne Brekke, 2011. "Does the Existence of a Public Good Enhance Cooperation among Users of Common-Pool Resources?," Land Economics, University of Wisconsin Press, vol. 87(2), pages 335-345.
    • Handle: RePEc:uwp:landec:v:87:y:2011:ii:1:p:335-345
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    Cited by:

    1. Nie, Zihan & Yang, Xiaojun, 2018. "Resource Scarcity and Cooperation: Evidence from an Irrigation System in Western China," EfD Discussion Paper 18-11, Environment for Development, University of Gothenburg.
    2. Momeni, Fatemeh, 2021. "Voluntary and mandatory provision of common-pool resources with heterogeneous users," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 785-813.
    3. Asproudis, Elias & Filippiadis, Eleftherios, 2021. "Bargaining for Community Fishing Quotas," MPRA Paper 107409, University Library of Munich, Germany.
    4. Nhim, Tum & Richter, Andries, 2022. "Path dependencies and institutional traps in water governance – Evidence from Cambodia," Ecological Economics, Elsevier, vol. 196(C).
    5. 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.
    6. 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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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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