IDEAS home Printed from https://ideas.repec.org/p/kch/wpaper/sdes-2014-5.html
   My bibliography  Save this paper

The Instability of the Nash Equilibrium in Common-Pool Resources

Author

Listed:
  • Tatsuyoshi Saijo

    (Kochi University of Technology)

  • Yutaka Kobayashi

    (Kochi University of Technology)

Abstract

Efficient allocations in common-pool resources cannot be accomplished when appropriators are selfish. In addition to this dilemma, using a linear approximation of best response functions at the Nash equilibrium in the common-pool resource environment, we find that the system of simultaneous difference equations is locally unstable if the number of appropriators is at least four. This result indicates that the equilibrium analysis might not capture the essence of the common-pool resource problem, but provides an answer to ``some unexplained pulsing behavior'' (Ostrom, Journal of Economic Behavior and Organization, vol. 61, no.2 [2006], p. 150) of each appropriator's labor input in common-pool resource experiments.

Suggested Citation

  • Tatsuyoshi Saijo & Yutaka Kobayashi, 2014. "The Instability of the Nash Equilibrium in Common-Pool Resources," Working Papers SDES-2014-5, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
  • Handle: RePEc:kch:wpaper:sdes-2014-5
    as

    Download full text from publisher

    File URL: http://www.souken.kochi-tech.ac.jp/seido/wp/SDES-2014-5.pdf
    File Function: First version, 2014
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rodriguez-Sickert, Carlos & Guzmán, Ricardo Andrés & Cárdenas, Juan Camilo, 2008. "Institutions influence preferences: Evidence from a common pool resource experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 215-227, July.
    2. Ito, Masaru & Saijo, Tatsuyoshi & Une, Masashi, 1995. "The Tragedy of the Commons revisited Identifying behavioral principles," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 311-335, December.
    3. Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-1161, September.
    4. 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.
    5. Hayo, Bernd & Vollan, Björn, 2012. "Group interaction, heterogeneity, rules, and co-operative behaviour: Evidence from a common-pool resource experiment in South Africa and Namibia," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 9-28.
    6. Walker, James M. & Gardner, Roy & Ostrom, Elinor, 1990. "Rent dissipation in a limited-access common-pool resource: Experimental evidence," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 203-211, November.
    7. Casari, Marco & Plott, Charles R., 2003. "Decentralized management of common property resources: experiments with a centuries-old institution," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 217-247, June.
    8. Timothy Cason & Lata Gangadharan, 2015. "Promoting cooperation in nonlinear social dilemmas through peer punishment," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 66-88, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatsuyoshi Saijo, 2014. "The instability of the voluntary contribution mechanism," Working Papers SDES-2014-3, Kochi University of Technology, School of Economics and Management, revised Oct 2014.

    More about this item

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kch:wpaper:sdes-2014-5. 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: (Sachiko Minami) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/smkocjp.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.