The Tradeoff of the Commons
We develop a model of scarce, renewable resources to study the commons problem. We show that, contrary to conventional wisdom, property rights can often be less efficient than a commons. In particular, we study two effects: (1) waste which arises when individuals expend resources to use a resource unavailable due to congestion and (2) the risk of underutilization of the resource. We provide necessary and sufficient conditions for each effect to dominate the other when the cost of determining the availability of a resource is low.
|Date of creation:||04 Nov 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Mark Bagnoli & Ted Bergstrom, 2005.
"Log-concave probability and its applications,"
Springer, vol. 26(2), pages 445-469, 08.
- Chander, Parkash & Leruth, Luc, 1989.
"The optimal product mix for a monopolist in the presence of congestion effects : A model and some results,"
International Journal of Industrial Organization,
Elsevier, vol. 7(4), pages 437-449, December.
- Chander, Parkash & Leruth, Luc., 1988. "The Optimal Product-Mix for a Monopolist in the Presence of Congestion Effect: A Model and Some Results," Working Papers 673, California Institute of Technology, Division of the Humanities and Social Sciences.
- Noam, Eli, 1998. "Spectrum Auctions: Yesterday's Heresy, Today's Orthodoxy, Tomorrow's Anachronism. Taking the Next Step to Open Spectrum Access," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 765-90, October.
- Hazlett, Thomas W, 1998. "Spectrum Flash Dance: Eli Noam's Proposal for "Open Access" to Radio Waves," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 805-20, October.
- Chakravarty, Surajeet & Kaplan, Todd R & Myles, Gareth, 2010.
"The Benefits of Costly Voting,"
21372, University Library of Munich, Germany.
- Roth, Alvin E & Xing, Xiaolin, 1994. "Jumping the Gun: Imperfections and Institutions Related to the Timing of Market Transactions," American Economic Review, American Economic Association, vol. 84(4), pages 992-1044, September.
- Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:26423. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.