Does scarcity exacerbate the tragedy of the commons? Evidence from fishers’ experimental responses
Economic Experimental Games (EEG) have challenged the theoretical prediction showing that individuals balance own and collective interests when making decisions that deviate away from suboptimal Nash equilibrium. However, few studies have analyzed whether these deviations from Nash equilibrium towards social optimum are affected as the stock of resource changes. Performing EEG with real fishers we test the hypothesis that behavior of participants –measured as relative deviations from Nash equilibrium- differs under a situation of abundance versus a situation of scarcity. The design of our EEG is based on a profit maximization model that incorporates intertemporal effects of aggregated extraction. Our findings show that in a situation of scarcity, players over extract the resource making decisions above the Nash equilibrium, obtaining less profit, mining the others-regarding interest, and exacerbating the tragedy of the commons. This result challenges previous general findings from the EEG literature. When individuals face abundance of the resource, however, they deviate downward from the individualistic and myopic behavior prediction. This phenomenon of private inefficient over exploitation is corrected when management strategies are introduced in the game, which underlines the importance of institutions.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Dijk, Frans & van Winden, Frans, 1997. "Dynamics of social ties and local public good provision," Journal of Public Economics, Elsevier, vol. 64(3), pages 323-341, June.
- Gillet, Joris & Schram, Arthur & Sonnemans, Joep, 2009. "The tragedy of the commons revisited: The importance of group decision-making," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 785-797, June.
- Herr, Andrew & Gardner, Roy & Walker, James M., 1997. "An Experimental Study of Time-Independent and Time-Dependent Externalities in the Commons," Games and Economic Behavior, Elsevier, vol. 19(1), pages 77-96, April.
- Cleve Willis & John Stranlund & Juan-Camilo Cardenas, 2002.
"Economic inequality and burden-sharing in the provision of local environmental quality,"
Artefactual Field Experiments
00030, The Field Experiments Website.
- Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2002. "Economic inequality and burden-sharing in the provision of local environmental quality," Ecological Economics, Elsevier, vol. 40(3), pages 379-395, March.
- Keser, Claudia, 1996. "Voluntary contributions to a public good when partial contribution is a dominant strategy," Economics Letters, Elsevier, vol. 50(3), pages 359-366, March.
- Cardenas, Juan-Camilo, 2004.
"Norms from outside and from inside: an experimental analysis on the governance of local ecosystems,"
Forest Policy and Economics,
Elsevier, vol. 6(3-4), pages 229-241, June.
- Juan-Camilo Cardenas, 2004. "Norms from outside and from inside: An experimental analysis on the governance of local ecosystems," Artefactual Field Experiments 00025, The Field Experiments Website.
- Pauly, D., 1990. "On Malthusian overfishing," Naga, The WorldFish Center, vol. 13(1), pages 3-4.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea08:6528. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.