A laboratory experiment is used to investigate the practical usefulness of two types of models or... more A laboratory experiment is used to investigate the practical usefulness of two types of models or decision tools employed in social planning. The case is quota setting in a two-species fishery. We find that advice from both a simplistic two-species stochastic optimization model and from two single-species simulation models improve management. The tools are complements rather than substitutes. The optimization model helps subjects to set targets more efficiently, and the simulation model helps subjects to avoid destabilizing overreactions. However, the tools are only approximations, and subjects do not adjust fully for weaknesses of the tools.
... Thus, nature represents the ultimate basis for human existence. We love our children. We even... more ... Thus, nature represents the ultimate basis for human existence. We love our children. We even cue about how things will go for them after we are dead and gone. Perhaps some people feel a similar kind of love to our planet? ...
Without resorting to the folk theorem or to altruistic preferences, we demonstrate that the probl... more Without resorting to the folk theorem or to altruistic preferences, we demonstrate that the problem of overharvesting among individually rational harvesters in a local commons vanishes if the harvesters share, and voluntarily contribute to, some public good. Formulating the model as a two-stage sequential game, the harvesting of a renewable natural resource takes place at the first stage. The observed harvesting surplus is then used for buying private goods and contributing to public goods at the second stage. In this setting, the model shows that the harvesters share an individual objective of maximizing total harvesting surplus.
The authors are grateful to colleagues in Defra and in other Government departments for their adv... more The authors are grateful to colleagues in Defra and in other Government departments for their advice and support. Particular thanks go to Richard Price, Sasha Maguire, Roald Dickens, Andrew Cotterill, Catherine Connolly, Helen Dunn, Caroline Spencer, Rocky Harris and Sally ...
The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is ... more The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is involved, individual consumers' marginal rates of substitution will generally differ. Thus, the less valuable the numéraire is to a person, the higher the number required to express his net benefit, and the more will his interest weigh in the total sum. The choice
... I demonstrate here that real NNP does not report changes in welfare. II. The Contribution of ... more ... I demonstrate here that real NNP does not report changes in welfare. II. The Contribution of Weitzman Consider the problem of choosing consumption, C, and investment, K, to find 00 V,(K,)=max C(s)er(s-) ds, (1) subject to (C,, ,)eS(K,), (2) where K= dK/dt. ...
We derive a measure of national income, defined in terms of maximum sustainable per capita consum... more We derive a measure of national income, defined in terms of maximum sustainable per capita consumption. If population and interest rates are constant, the income generated by natural resource extraction is the return on resource wealth, defined as the present value ...
The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is ... more The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is involved, individual consumers' marginal rates of substitution will generally differ. Thus, the less valuable the numéraire is to a person, the higher the number required to express his net benefit, and the more will his interest weigh in the total sum. The choice
... A Public Good Game with Endogenous Group Formation ∗ Kjell Arne Brekke, Karen Evelyn Hauge, J... more ... A Public Good Game with Endogenous Group Formation ∗ Kjell Arne Brekke, Karen Evelyn Hauge, Jo Thori Lind, Karine Nyborg ... 7Brekke, Nyborg, and Rege (2007). For overviews of club theory, see Cornes and Sandler (1986) and Scotchmer (2002). 2 Page 3. ...
... and Kegan Paul Ltd. Brekke, Kjell Arne, Richard B. Howarth and Karine Nyborg (1997): Hirsch c... more ... and Kegan Paul Ltd. Brekke, Kjell Arne, Richard B. Howarth and Karine Nyborg (1997): Hirsch conjecture on the relative importance of positional good versus consumer goods. ... 99-117. Frank, Robert. (1985): Choosing the right pond, NY: Oxford University Press. ...
... Thus, nature represents the ultimate basis for human existence. We love our children. We even... more ... Thus, nature represents the ultimate basis for human existence. We love our children. We even cue about how things will go for them after we are dead and gone. Perhaps some people feel a similar kind of love to our planet? ...
A laboratory experiment is used to investigate the practical usefulness of two types of models or... more A laboratory experiment is used to investigate the practical usefulness of two types of models or decision tools employed in social planning. The case is quota setting in a two-species fishery. We find that advice from both a simplistic two-species stochastic optimization model and from two single-species simulation models improve management. The tools are complements rather than substitutes. The optimization model helps subjects to set targets more efficiently, and the simulation model helps subjects to avoid destabilizing overreactions. However, the tools are only approximations, and subjects do not adjust fully for weaknesses of the tools.
... Thus, nature represents the ultimate basis for human existence. We love our children. We even... more ... Thus, nature represents the ultimate basis for human existence. We love our children. We even cue about how things will go for them after we are dead and gone. Perhaps some people feel a similar kind of love to our planet? ...
Without resorting to the folk theorem or to altruistic preferences, we demonstrate that the probl... more Without resorting to the folk theorem or to altruistic preferences, we demonstrate that the problem of overharvesting among individually rational harvesters in a local commons vanishes if the harvesters share, and voluntarily contribute to, some public good. Formulating the model as a two-stage sequential game, the harvesting of a renewable natural resource takes place at the first stage. The observed harvesting surplus is then used for buying private goods and contributing to public goods at the second stage. In this setting, the model shows that the harvesters share an individual objective of maximizing total harvesting surplus.
The authors are grateful to colleagues in Defra and in other Government departments for their adv... more The authors are grateful to colleagues in Defra and in other Government departments for their advice and support. Particular thanks go to Richard Price, Sasha Maguire, Roald Dickens, Andrew Cotterill, Catherine Connolly, Helen Dunn, Caroline Spencer, Rocky Harris and Sally ...
The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is ... more The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is involved, individual consumers' marginal rates of substitution will generally differ. Thus, the less valuable the numéraire is to a person, the higher the number required to express his net benefit, and the more will his interest weigh in the total sum. The choice
... I demonstrate here that real NNP does not report changes in welfare. II. The Contribution of ... more ... I demonstrate here that real NNP does not report changes in welfare. II. The Contribution of Weitzman Consider the problem of choosing consumption, C, and investment, K, to find 00 V,(K,)=max C(s)er(s-) ds, (1) subject to (C,, ,)eS(K,), (2) where K= dK/dt. ...
We derive a measure of national income, defined in terms of maximum sustainable per capita consum... more We derive a measure of national income, defined in terms of maximum sustainable per capita consumption. If population and interest rates are constant, the income generated by natural resource extraction is the return on resource wealth, defined as the present value ...
The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is ... more The choice of numéraire is shown to be important in cost-benefit analysis. When a public good is involved, individual consumers' marginal rates of substitution will generally differ. Thus, the less valuable the numéraire is to a person, the higher the number required to express his net benefit, and the more will his interest weigh in the total sum. The choice
... A Public Good Game with Endogenous Group Formation ∗ Kjell Arne Brekke, Karen Evelyn Hauge, J... more ... A Public Good Game with Endogenous Group Formation ∗ Kjell Arne Brekke, Karen Evelyn Hauge, Jo Thori Lind, Karine Nyborg ... 7Brekke, Nyborg, and Rege (2007). For overviews of club theory, see Cornes and Sandler (1986) and Scotchmer (2002). 2 Page 3. ...
... and Kegan Paul Ltd. Brekke, Kjell Arne, Richard B. Howarth and Karine Nyborg (1997): Hirsch c... more ... and Kegan Paul Ltd. Brekke, Kjell Arne, Richard B. Howarth and Karine Nyborg (1997): Hirsch conjecture on the relative importance of positional good versus consumer goods. ... 99-117. Frank, Robert. (1985): Choosing the right pond, NY: Oxford University Press. ...
... Thus, nature represents the ultimate basis for human existence. We love our children. We even... more ... Thus, nature represents the ultimate basis for human existence. We love our children. We even cue about how things will go for them after we are dead and gone. Perhaps some people feel a similar kind of love to our planet? ...
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