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Asymmetric Information may Protect the Commons: The Welfare Benefits of Uniformed Regulators

  • Ana Espinola-Arredondo
  • Felix Munoz-Garcia

    ()

    (School of Economic Sciences, Washington State University)

We examine an entry-deterrence model in the commons. We investigate in which contexts the presence of asymmetric information among the fi?rms exploiting the commons becomes welfare improving, relative to complete information, and in which settings an uninformed regulator might have incentives to assess and disseminate the available stock among potential entrants.

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File URL: http://faculty.ses.wsu.edu/WorkingPapers/Munoz/WP2013-8.pdf
File Function: First version, 2013
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Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2013-8.

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Length: 10 pages
Date of creation:
Date of revision:
Handle: RePEc:wsu:wpaper:munoz-14
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  1. Charles F. Manson & Stephen Polasky, 1993. "Entry Deterrence In The Commons," Boston College Working Papers in Economics 209, Boston College Department of Economics.
  2. Nicolas Faysse, 2005. "Coping with the Tragedy of the Commons: Game Structure and Design of Rules," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 239-261, 04.
  3. Jérémy Laurent-Lucchetti & Justin Leroux & Bernard Sinclair-Desgagné, 2011. "Splitting an Uncertain (Natural) Capital," Cahiers de recherche 11-01, HEC Montréal, Institut d'économie appliquée.
  4. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2011. "Can incomplete information lead to under-exploitation in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 402-413.
  5. Polasky, Stephen & Bin, Okmyung, 2001. "Entry Deterrence and Signaling in a Nonrenewable Resource Model," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 235-256, November.
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