Strategic Exploitation of a Common Property Resource Under Uncertainty

Strategic exploitation of a common-property resource under uncertainty

We construct a game of noncooperative common-resource exploitation which delivers analytical solutions for its symmetric Markov-perfect Nash equilibrium. We examine how introducing uncertainty to the natural law of resource reproduction affects strategic exploitation. We show that the commons problem is always present in our example and we identify cases in which increases in risk amplify or mi...

Strategic exploitation of a common resource under environmental risk

We study the effect of environmental risk on the extraction of a common resource. Using a dynamic and non-cooperative game in which an environmental event impacts the renewability and the quality of the resource, we show that the anticipation of such an event has an ambiguous effect on extraction and the tragedy of the commons. A risk of a reduction in the renewability induces the agents to ext...

Auctions or Contests ? Resource allocation under strategic uncertainty

We compare methods to allocate resources or operator licenses in industries where the future value of the resource is unknown at the time of allocation as it depends on ex-post joint actions of operators. For example, the value of radio spectrum licenses may depend on ex-post investments into infrastructure development by the operators. Some countries consider infrastructure development among t...

Strategic Technology Adoption under Technological Uncertainty

Local Common Property Exploitation with Rewards

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 c...