Date: | 2014-04 |
By: | Marielle Brunette (Laboratoire d’Economie Forestière, INRA – AgroParisTech) Philippe Delacote (Laboratoire d’Economie Forestière, INRA – AgroParisTech) Serge Garcia (Laboratoire d’Economie Forestière, INRA – AgroParisTech) Jean-Marc Rousselle (INRA, UMR 1135 LAMETA) |
URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-06&r=net |
The impact of the safety-net use of Common-pool resources (CPR) on the individual investment into and extraction from the commons is analyzed in this paper. Agents of the community first choose to invest in their private project and in the CPR; second, they choose how much to extract from their private project and the commons. The model compares two types of risk management tool: CPR as risk-coping and risk-diversification mechanisms. It also compares two types of risk: risk on a private project and risk on CPR investment by other community members. The theoretical predictions are empirically tested with experimental economics. In this view, we propose an original CPR game composed of two periods, an investment one and an extraction one. Our result clearly shows that risk reduction in the private project unambiguously decreases investment in the CPR, while it does not impact CPR extraction. We also show that a risk-coping strategy is well understood as more flexible and influenced by the outcome in terms of private project yield.
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Keywords: | Common-pool resource, Common-pool resource game, deforestation, experimental economics. |
JEL: | Q15 Q23 D71 D81 |
Tag Archives: risk
Just Luck: An Experimental Study of Risk-Taking and Fairness
Cappelen, Alexander W., James Konow, Erik Ø. Sørensen, and Bertil Tungodden. 2013. “Just Luck: An Experimental Study of Risk-Taking and Fairness." American Economic Review, 103(4): 1398-1413. DOI: 10.1257/aer.103.4.1398; Online Appendix (307.82 KB) | Download Data Set (215.97 KB)
Abstract
Prospect theory: An analysis of decision under risk
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 263-291. uoregon.edu 提供的 [PDF]; [PDF] albacharia.ma] ;
Production economics in the presence of risk
Shankar, S. (2012). Production economics in the presence of risk*. Australian Journal of Agricultural and Resource Economics, 56(4), 597-620. Wiley;
==original Abstract==
This paper provides an overview of the literature on production under the influence of risk. Various specifications of stochastic production function such as models with additive and multiplicative uncertainty, Just and Pope model, output-cubical, state-allocable and state-general models are discussed. Further, criteria determining optimal producer behaviour are derived for deterministic production technology and for various kinds of state-contingent technologies such as output-cubical, state-specific, state-allocable and state-general technologies. Finally, a brief discussion is presented about the drawbacks of each of these specifications of technology.
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Are Behavioral Choices in the Ultimatum and Investment Games Strategic?
Date: | 2012-09 |
By: | Lora R. Todorova (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) Bodo Vogt (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:120021&r=net |
This paper experimentally examines the relationship between self-reporting risk preferences and behavioral choices in the subsequently played dictator, ultimatum and investment games. The results from these experiments are used to discern the motivational bases of behavioral choices in the ultimatum and investment games. The focus is on investigating whether strategic considerations are important for strategy selection in the two games. We find that self-reporting risk preferences does not alter the dictators’ offers and trusters’ investments, while it significantly decreases the proposers’ offers and leads to a substantial decrease in the amount trustees give back to their partners. We interpret these results as evidence that the decisions of proposers in the ultimatum game and trustees in the investment game are strategic.
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Keywords: | coordination game, dictator game, ultimatum game, investment game, questionnaire, risk scale, risk preferences |
JEL: | C7 |