IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The opportunity costs of conservation with deterministic and probabilistic degradation externalities

  • Esther Blanco

    ()

  • Maria Claudia Lopez

    ()

  • James M. Walker

    ()

This experimental study examines variations in the opportunity cost of conservation (the foregone private earnings from appropriation) in two linear appropriation games that include symmetric and asymmetric subject payoffs. In the first game, appropriation leads to deterministic degradation in the value of the commons. In the second game, appropriation leads to both deterministic and probabilistic catastrophic degradation, introducing endogenous uncertainty in the value of the opportunity cost of conserving the commons. The experimental design abstracts away from path-dependent group dynamics that allow for reputation building. Instead the design is built around a one-shot, within subject, decision setting in which there is no potential to observe others decisions or signal one’s own intentions. In summary, subjects systematically decrease appropriation the lower the opportunity cost of conservation, and in decision settings with asymmetric game parameters, subjects appear to react primarily to their own marginal incentives rather than others. Moreover, the addition of probabilistic degradation leads to further decreases in appropriation. These decreases, however, are not large enough to offset decreases in expected efficiency due to expected losses in the value of the commons.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://eeecon.uibk.ac.at/wopec2/repec/inn/wpaper/2012-25.pdf
Download Restriction: no

Paper provided by Faculty of Economics and Statistics, University of Innsbruck in its series Working Papers with number 2012-25.

as
in new window

Length: 52
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:inn:wpaper:2012-25
Contact details of provider: Postal: Universitätsstraße 15, A - 6020 Innsbruck
Phone: 0512/507-7151
Fax: 0512/507-2788
Web page: http://www.uibk.ac.at/fakultaeten/volkswirtschaft_und_statistik/index.html.en
Email:


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.:

as in new window
  1. Brandts, Jordi & Schram, Arthur, 2001. "Cooperation and noise in public goods experiments: applying the contribution function approach," Journal of Public Economics, Elsevier, vol. 79(2), pages 399-427, February.
  2. Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-61, September.
  3. J. Ledyard, 1997. "Public Goods: A Survey of Experimental Research," Levine's Working Paper Archive 509, David K. Levine.
  4. Urs Fischbacher & Simeon Schudy & Sabrina Teyssier, 2012. "Heterogeneous Reactions to Heterogeneity in Returns from Public Goods," Working Paper Series of the Department of Economics, University of Konstanz 2012-14, Department of Economics, University of Konstanz.
  5. Kenneth S. Chan & Stuart Mestelman & Rob Moir & R. Andrew Muller, 1998. "Heterogeneity and the Voluntary Provision of Public Goods," Department of Economics Working Papers 1998-04, McMaster University.
  6. R. M Isaac & J. Walker & A. Williams, 2010. "Group Size and the Voluntary Provision of Public Goods: Experimental Evidence Utilizing Very Large Groups," Levine's Working Paper Archive 11, David K. Levine.
  7. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  8. Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
  9. Ernesto Reuben & Arno Riedl, 2009. "Public Goods Provision and Sanctioning in Privileged Groups," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(1), pages 72-93, February.
  10. Offerman, Theo & Sonnemans, Joep & Schram, Arthur, 1996. "Value Orientations, Expectations and Voluntary Contributions in Public Goods," Economic Journal, Royal Economic Society, vol. 106(437), pages 817-45, July.
  11. Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 351-66, April.
  12. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May.
  13. Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September.
  14. Fangfang Tan, 2008. "Punishment in a Linear Public Good Game with Productivity Heterogeneity," De Economist, Springer, vol. 156(3), pages 269-293, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:inn:wpaper:2012-25. 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: (Janette Walde)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.