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Multiple Interactions and the Management of Local Commons

  • Damien S Eldridge

    ()

    (Department of Economics and Finance, La Trobe University)

We provide a model in which small and relatively isolated communities can successfully manage local commons informally in circumstances where larger or less isolated communities could not do so. The reason for this is the non-anonymous nature of many interactions between the members of a small and isolated community. Such communities may be able to use these multiple interactions to enforce informal restrictions on the usage of local commons. To the extent that the process of economic development reduces the number of non-anonymous interactions among community members, it will reduce the ability of the community to successfully manage the local commons informally. The resulting need for either explicit regulation or the introduction of private property rights represents a hidden cost of development.

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File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0019/130906/2007.07.pdf
File Function: First version, 2007.07.pdf
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Paper provided by School of Economics, La Trobe University in its series Working Papers with number 2007.07.

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Length: 17 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:ltr:wpaper:2007.07
Contact details of provider: Web page: http://www.latrobe.edu.au/economics

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  1. Pranab Bardhan, 1993. "Symposium on Management of Local Commons," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 87-92, Fall.
  2. Damien S. Eldridge, 2009. "Multiple Interactions and the Management of Local Commons," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 344-349, 09.
  3. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
  4. De Long, J. Bradford & Shleifer, Andrei, 1993. "Princes and Merchants: European City Growth before the Industrial Revolution," Scholarly Articles 3451302, Harvard University Department of Economics.
  5. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," NBER Working Papers 8852, National Bureau of Economic Research, Inc.
  6. Elinor Ostrom & Roy Gardner, 1993. "Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 93-112, Fall.
  7. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
  8. Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-62, June.
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