2008
DOI: 10.1016/j.ecolecon.2007.04.004
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Renewable resource management, user heterogeneity, and the scope for cooperation

Abstract: Cooperation can increase the efficiency of commonly-owned renewable resource use. However, received knowledge is that, absent side payments, cooperative solutions are more difficult to achieve the less homogenous the agents involved. We revisit this claim by analyzing how differences in the opportunity costs of resource harvesting affect the scope for Pareto-improving contracts, where contracting is with respect to the type of technology used. We find that the scope for cooperation is largest for intermediate … Show more

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Cited by 11 publications
(12 citation statements)
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“…Our results indicate that income inequality did not have any significant effect on the participation of the forest users. This runs contrary to the theoretical predictions, which assert a significant (negative or positive) relationship between income heterogeneity and cooperation [80][81][82][83][84][85]. This may be attributed to the unreliability of income data collected from the field.…”
Section: Effect Of Social Heterogeneitycontrasting
confidence: 62%
“…Our results indicate that income inequality did not have any significant effect on the participation of the forest users. This runs contrary to the theoretical predictions, which assert a significant (negative or positive) relationship between income heterogeneity and cooperation [80][81][82][83][84][85]. This may be attributed to the unreliability of income data collected from the field.…”
Section: Effect Of Social Heterogeneitycontrasting
confidence: 62%
“…In economic terms, coordination is generally not Paretoimproving (i.e. harmful to no one) when sectors are asymmetrical (Hutton et al 2001;Erdlenbruch et al 2008). Accordingly, asymmetry in our models led coordinated management to focus on particular high-growth species (e.g.…”
Section: Discussionmentioning
confidence: 95%
“…Others have shown how more moderate levels of coordination among agents can lead conditions away from the Nash equilibrium and toward greater economic returns (Costello and Deacon 2007). Incentives for coordination can be created by pooling yields or profits (Gaspart and Seki 2003) and/or driven exogenously (e.g., via regulation); a challenge is formalizing costs to contracting coordination and integrating them into the analysis of harvest strategies (Johnson and Libecap 1982, McCarthy et al 2001, Potter 2003, Erdlenbruch et al 2008). With TURFs, the level of coordination necessary PLATE 1.…”
Section: Discussionmentioning
confidence: 99%