Strategic exploitation of a common resource under environmental risk

• Main Authors: FESSELMEYER, Eric, SANTUGINI, Marc
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Conservation; Dynamic games; Environmental risk; Renewable resources; Tragedy of the commons; Cultural Resource Management and Policy Analysis; Environmental Policy
• Online Access: https://ink.library.smu.edu.sg/cis_research/13; https://ink.library.smu.edu.sg/context/cis_research/article/1012/viewcontent/1_s2.0_S0165188912001467_main.pdf
• Institution: Singapore Management University

We study the effect of environmental risk on the extraction of a common resource. Using a dynamic and non-cooperative game in which an environmental event impacts the renewability and the quality of the resource, we show that the anticipation of such an event has an ambiguous effect on extraction an...