The endogenous formation of common pool resource coalitions

Carlos A. Chávez, James Murphy, Felipe Quezada and John K. Stranlund

Journal of Economic Behavior & Organization, 2023, vol. 211, issue C, 82-102

Abstract: We present the results of framed field (lab-in-field) experiments designed to investigate the endogenous formation of common pool resource (CPR) coalitions when the resource is co-defended with costly monitoring by coalition members and sanctions for encroachment imposed by the government. The experiments were conducted with fishers who were members of Chile's territorial use rights fisheries (TURFs) and in the lab with Chilean university students. Consistent with theoretical predictions, the fishers frequently formed CPR coalitions, even when they could not deter outsider poaching. When the cost of monitoring was low, fishers frequently formed the grand coalition. Coalitions tended to be smaller when monitoring was more costly, but not significantly so. However, coalitions were significantly smaller when monitoring was not available relative to when the cost of monitoring was low. Fishers also invested in monitoring frequently and these investments reduced poaching. When coalitions formed, total harvest effort was curtailed and earnings for coalition members generally increased. Students formed coalitions less frequently, these coalitions tended to be small, and they infrequently invested in monitoring, even when it was profitable to do so. Consequently, student coalition members were not better off on average than under open access.

Keywords: Common pool resources; Experimental economics; Field experiments; Coalition formation; Enforcement; Poaching; Encroachment (search for similar items in EconPapers)
JEL-codes: C93 D71 K42 Q20 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: The Endogenous Formation of Common Pool Resource Coalitions (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:211:y:2023:i:c:p:82-102

DOI: 10.1016/j.jebo.2023.04.028

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