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May 2001
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APPROPRIATING THE COMMONS –
A THEORETICAL EXPLANATION
Armin Falk
Ernst Fehr
Urs Fischbacher
CESifo Working Paper No. 474
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CESifo
Working Paper No. 474
May 2001
APPROPRIATING THE COMMONS –
A THEORETICAL EXPLANATION
Abstract
In this paper we show that a simple model of fairness preferences explains major experimental regularities of common pool resource (CPR) experiments. The evidence indicates that in standard CPR games without communication and without sanctioning possibilities inefficient excess appropriation is the rule. However, when communication or informal sanctions are available appropriation behavior is more efficient. Our analysis shows that these regularities arise naturally when a fraction of the subjects exhibits reciprocal preferences.
JEL Classification: C7, C91, C92, D00, D63, H41.
Keywords: Common pool resources, experiments, fairness, reciprocity, game theory, fairness models.
Armin Falk University of Zürich Institute for Empirical Research in Economics Blümlisalpstr. 10 CH-8006 Zürich Switzerland [email protected] Ernst Fehr University of Zürich Institute for Empirical Research in Economics Blümlisalpstr. 10 CH-8006 Zürich Switzerland Urs Fischbacher University of Zürich Institute for Empirical Research in Economics
Blümlisalpstr. 10 CH-8006 Zürich
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