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Governing a Common-Pool Resource in a Directed Network

Author

Listed:
  • Richefort, Lionel
  • Point, Patrick

Abstract

A local public-good game played on directed networks is analyzed. The model is motivated by one-way flows of hydrological influence between cities of a river basin that may shape the level of their contribution to the conservation of wetlands. It is shown that in many (but not all) directed networks, there exists an equilibrium, sometimes socially desirable, in which some stakeholders exert maximal effort and the others free ride. It is also shown that more directed links are not always better. Finally, the model is applied to the conservation of wetlands in the Gironde estuary (France).

Suggested Citation

  • Richefort, Lionel & Point, Patrick, 2010. "Governing a Common-Pool Resource in a Directed Network," Sustainable Development Papers 98470, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:98470
    DOI: 10.22004/ag.econ.98470
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    Cited by:

    1. Bayer, Péter & Kozics, György & Szőke, Nóra Gabriella, 2023. "Best-response dynamics in directed network games," Journal of Economic Theory, Elsevier, vol. 213(C).

    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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