Common Pool Resource Appropriation under Costly Cooperation
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In addition to the usual fixed costs, we introduce variable costs in a community's effort to cooperate in extracting from a common pool resource. Using a standard supervision mechanism, these variable costs are shown to be an increasing function of individual members' incentives to default. The model explains why we frequently observe communities that all cooperate and have relatively similar resource endowments, and yet achieve very different levels of extraction. (C) 2001 Academic Press.
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