DOI link to open access article:
Golden rule in cooperative commons
Sjur Didrik Flåm
Journal of Mechanism and Institution Design
Volume 8, issue 1, pages 57-74 (December 2023)
doi: 10.22574/jmid.2023.12.002
This paper considers common use of natural, renewable resources. It identifies good prospects for efficiency and welfare. To be precise, a core outcome -- hence cooperation -- can be secured over time by principal planning of total quotas, and in time by agents who share these in short-term markets. Information flows in two directions: to the principal as market prices and from him as total quantities. Of particular interest is eventual convergence to a golden-rule, steady state.
Keywords: Renewable resources, commons, golden rule.
JEL Classification Numbers: D02, D23, D44, P13, Q22.