Probabilistic Destruction of Common Pool Resources: Experimental Evidence

Abstract

Subsequently Published as: Walker, James, and Roy Gardner 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence." Economic Journal 102(414):1149-1161.

"This paper uses a game theoretic model of a common pool resources to investigate whether the possibility of destroying the resource significantly affects choice behavior in the laboratory.

"When subgame perfection involves a significant probability of destruction, the common pool resource is in every case destroyed and in most cases, rather quickly. Even when there is a subgame perfect equilibrium which is completely safe and yields near optimal rents, subjects do not stabilize at this equilibrium. The consequence of this destruction is in every case a significant loss in efficiency."