This paper provides a formal analysis of the evolution of cooperation in the management of common property resources. We develop a dynamic model that includes moral norms or a sense of 'identity,' and show that cooperation may but need not be an equilibrium outcome in the absence of intervention by a managing agency or punishment by peers. We demonstrate that outside intervention has ambiguous effects when identity matters it may reduce welfare of the agents harvesting the stock.
|Number of pages||35|
|Journal||The B.E. Journal of Economic Analysis and Policy|
|Issue number||1 art. 13|
|Publication status||Published - 2010|