Social dilemmas, time preferences and technology adoption in a commons problem

Share/Save/Bookmark

Joosten, Reinoud (2012) Social dilemmas, time preferences and technology adoption in a commons problem. [Report]

[img]
Preview
PDF
288kB
Abstract:Agents interacting on a body of water choose between technologies to catch fish. One is harmless to the resource, as it allows full recovery; the other yields high immediate catches, but low(er) future catches. Strategic interaction in one 'objective'resource game may induce several 'subjective' games in the class of social dilemmas. Which unique 'subjective'game is actually played depends crucially on how the agents discount their future payo¤s. We examine equilibrium behavior and its consequences on sustainability of the common-pool resource system under exponential and hyperbolic discounting. A sufficient degree of patience on behalf of the agents may lead to equilibrium behavior averting exhaustion of the resource, though full restraint (both agents choosing the ecologically or environmentally sound technology) is not necessarily achieved. Furthermore, if the degree of patience between agents is sufficiently dissimilar, the more patient is exploited by the less patient one in equilibrium. We demonstrate the generalizability of our approach developed throughout the paper. We provide recommendations to reduce the enormous complexity surrounding the general cases.
Item Type:Report
Copyright:© 2011 The Author(s)
Faculty:
Management and Governance (SMG)
Research Chair:
Research Group:
Link to this item:http://purl.utwente.nl/publications/79521
Official URL:https://papers.econ.mpg.de/evo/discussionpapers/2011-09.pdf
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page