RT Journal Article
SR Electronic
T1 Local Common Property Exploitation with Rewards
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 637
OP 654
DO 10.3368/le.85.4.637
VO 85
IS 4
A1 Johannesen, Anne Borge
A1 Skonhoft, Anders
YR 2009
UL http://le.uwpress.org/content/85/4/637.abstract
AB 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)