Analyzing Rule Changes in a Common Resource Scenario
A community of fishermen shares a lake. Initially, there are no rules, and each can fish as much as they want, which has led to a rapid decline in the fish population. A new rule is introduced: at the end of each week, every fisherman's total catch is publicly posted. Any member of the community can then choose to publicly condemn a fisherman for catching too much. This act of condemnation carries a small social cost for the person doing it, but imposes a larger social penalty on the person being condemned. Based on principles derived from economic experiments, analyze the likely effect of this new rule on the total weekly catch from the lake and explain the mechanism driving this change.
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Library Science
Economics
Economy
Introduction to Microeconomics Course
Social Science
Empirical Science
Science
CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Analysis in Bloom's Taxonomy
Cognitive Psychology
Psychology
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