Local Common Property Exploitation with Rewards

Anne Borge Johannesen and Anders Skonhoft


This paper analyzes coalition formation in a livestock-pasture system where livestock are privately owned and the pasture is a common property. While standard models predict rather low prospects of cooperation, this paper introduces a cost advantage of cooperation based on Saami reindeer herding that may explain higher coalition participation. In contrast to the existing fishery literature on coalition formation, all players are assumed ex ante homogenous but may differ ex post due to the cost advantage. A stable equilibrium with cooperation can be reached and a moderate exploitation level can be sustained compared to the “tragedy of the commons” outcome. (JEL Q24)

This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.

Purchase access

You may purchase access to this article. This will require you to create an account if you don't already have one.