Tavoni, Alessandro, Schlüter, Maja and Levin, Simon (2011) The survival of the conformist: social pressure and renewable resource management. Centre for Climate Change Economics and Policy and Grantham Research Institute on Climate Change and the Environment working papers, 35. Centre for Climate Change Economics and Policy and Grantham Research Institute on Climate Change and the Environment, London, UK.
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This paper examines the role of other-regarding behavior as a mechanism for the establishment and maintenance of cooperation in resource use under variable social and environmental conditions. By coupling resource stock dynamics with social dynamics concerning compliance to a social norm prescribing non-excessive resource extraction in a common pool resource, we show that when reputational considerations matter and a sufficient level of social stigma affects the violators of a norm, sustainable outcomes are achieved. We find large parameter regions where norm-observing and norm-violating types coexist, and analyze to what extent such coexistence depends on the environment.
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