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Preferences for government enforcement of a common pool harvest quota: Theory and experimental evidence from fishing communities in Colombia

Author Info

Listed author(s):
  • Maria Alejandra Velez

    ()

    (School of Management, Universidad de los Andes)

  • John K. Stranlund

    ()

    (Department of Resource Economics, University of Massachusetts Amherst)

  • James J. Murphy

    ()

    (Department of Economics, University of Alaska Anchorage)

Abstract

We examine individual harvesters’ preferences for government enforcement of a quota imposed on the exploitation of a common pool resource. We develop a model of Nash behavior by identical risk neutral harvesters to explain individual equilibrium preferences for enforcement of an efficient harvest quota. If the quota is not enforced well, we demonstrate that individual harvesters will always prefer increased enforcement—either increased monitoring or increased penalties—of the quota. We conduct a test of this theoretical result with data from framed common pool resource experiments conducted in artisanal fishing communities in three regions of Colombia. Subjects were given the opportunity to express their preferences for enforcement by voting on two levels of enforcement of a harvest quota, with and without communication. The two enforcement strategies involved the same probability that the government would audit individual harvesters, but differed in the level of the penalty for noncompliance. Contrary to theory, individuals voted for the lower inefficient penalty about 80% of the time and groups implemented this weaker enforcement strategy over 90% of the time. Giving subjects the opportunity to vote on the enforcement strategy did not lead to more efficient harvests, nor did allowing subjects to communicate before voting.

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File URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA201202.pdf
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Paper provided by University of Alaska Anchorage, Department of Economics in its series Working Papers with number 2012-02.

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Date of creation: Feb 2012
Publication status: Published in Ecological Economics, 77(May):185-192.
Handle: RePEc:ala:wpaper:2012-02
Contact details of provider: Web page: http://www.cbpp.uaa.alaska.edu/CBPPHome/DepartmentsandMajors/Economics.aspx

More information through EDIRC

Keywords: common pool resources; field experiments; institutions; communication; regulation; voting;

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Find related papers by JEL classification:
  • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
  • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
  • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

References listed on IDEAS
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  1. Matthias Sutter & Stefan Haigner & Martin G. Kocher, 2010. "Choosing the Carrot or the Stick? Endogenous Institutional Choice in Social Dilemma Situations," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1540-1566.
  2. Jana Vyrastekova & Daan van Soest, 2003. "Centralized Common-Pool Management and Local Community Participation," Land Economics, University of Wisconsin Press, vol. 79(4), pages 500-514.
  3. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, 06.
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  6. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000. "Local Environmental Control and Institutional Crowding-Out," World Development, Elsevier, vol. 28(10), pages 1719-1733, October.
  7. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
  8. Bischoff, Ivo, 2007. "Institutional choice versus communication in social dilemmas--An experimental approach," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 20-36, January.
  9. Velez, Maria Alejandra & Stranlund, John K. & Murphy, James J., 2009. "What motivates common pool resource users? Experimental evidence from the field," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 485-497, June.
  10. Juan-Camilo Cardenas, 2005. "Groups, commons and regulations: Experiments with villagers and students in colombia," Artefactual Field Experiments 00026, The Field Experiments Website.
  11. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
  12. Maria Alejandra Velez & James J. Murphy & John K. Stranlund, 2010. "Centralized And Decentralized Management Of Local Common Pool Resources In The Developing World: Experimental Evidence From Fishing Communities In Colombia," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 254-265, 04.
  13. Cornes, Richard & Sandler, Todd, 1983. "On Commons and Tragedies," American Economic Review, American Economic Association, vol. 73(4), pages 787-792, September.
  14. Magdalena Margreiter & Matthias Sutter & Dennis Dittrich, 2005. "Individual and Collective Choice and Voting in Common Pool Resource Problem with Heterogeneous Actors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(2), pages 241-271, October.
  15. Alm, James & McClelland, Gary H & Schulze, William D, 1999. "Changing the Social Norm of Tax Compliance by Voting," Kyklos, Wiley Blackwell, vol. 52(2), pages 141-171.
  16. Feld, Lars P & Tyran, Jean-Robert, 2002. "Tax Evasion and Voting: An Experimental Analysis," Kyklos, Wiley Blackwell, vol. 55(2), pages 197-222.
  17. Ostrom, Elinor, 2006. "The value-added of laboratory experiments for the study of institutions and common-pool resources," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 149-163, October.
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Cited by:

  1. Villamayor-Tomas, Sergio, 2014. "Cooperation in common property regimes under extreme drought conditions: Empirical evidence from the use of pooled transferable quotas in Spanish irrigation systems," Ecological Economics, Elsevier, vol. 107(C), pages 482-493.
  2. Sundström, Aksel, 2016. "Corruption and Violations of Conservation Rules: A Survey Experiment with Resource Users," World Development, Elsevier, vol. 85(C), pages 73-83.
  3. Torres-Guevara, Luz Elba & Schlüter, Achim, 2016. "External validity of artefactual field experiments: A study on cooperation, impatience and sustainability in an artisanal fishery in Colombia," Ecological Economics, Elsevier, vol. 128(C), pages 187-201.

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