Solving conflict over common pool resources through delegation to a stakeholder

Gabriel Bayle (), Stefano Farolfi (), Emmanuelle Lavaine () and Marc Willinger ()
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Gabriel Bayle: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier
Emmanuelle Lavaine: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier
Marc Willinger: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier

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Abstract: We study the effectiveness of delegation as a conflict resolution mechanism for managing common pool resources (CPR). Delegation involves empowering stakeholders to make collective decisions on behalf of resource users. We investigate, theoretically and experimentally, a delegation approval mechanism (DAM) in a three-player common-pool resource (CPR) game in which players can vote for extractions. In case of disapproval, in stage 2, one player is randomly selected to choose authoritatively the uniform extraction for the group, putting the disapproval arbitration at an endogenous level. Backwards elimination of weakly dominated strategies (BEWDS) predicts the socially optimum extraction under unanimity, but not under majority. Our experimental findings show that the DAM strongly reduces extractions and that most selected delegates choose the optimal extraction.

Date: 2024-11
Note: View the original document on HAL open archive server: https://hal.science/hal-04682703v1
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Published in Journal of Economic Behavior and Organization, 2024, 227, pp.106702. ⟨10.1016/j.jebo.2024.106702⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04682703

DOI: 10.1016/j.jebo.2024.106702

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