Dynamic Games of Common-Property Resource Exploitation When Self-image Matters

Abstract

The purpose of this paper is to model the influence of Kantian moral scruples in a dynamic environment. Our objectives are two-fold. Firstly, we investigate how a Nash equilibrium among agents who have moral scruples may ensure that the exploitation of a common property renewable resource is Pareto efficient at every point of time. Secondly, we outline a prototype model that shows, in an overlapping generation framework, how a community's sense of morality may evolve over time and identifies conditions under which the community may reach a steady state level of morality in which everyone is perfectly Kantian.

Standards compliance, participation in the global value chain and the value-added of labour: evidence from Vietnam’s small-and-medium-sized enterprises

“…This paper empirically tests the hypothesis proposed by Prof Ngo Van Long (2019) in relation to Vietnam’s small-and-medium enterprises (SMEs). In particular, we investigate whether enterprises that comply with international standards (or at least have certificates of compliance) could achieve improved business outcomes (and also more favourable outcomes for society) in terms of participation in the global value chain and the value-added by labour.…”

“…Despite the well-known incentives to free ride, a social optimum may be within reach provided that agents have a precise idea of what actions would be prescribed by ethics, and they feel bad if their own actions do not match the moral idealVan Long (2019)…”