DYNAMIC MECHANISM DESIGN FOR A GLOBAL COMMONS

• Published in: International economic review (Philadelphia) Vol. 58; no. 3; pp. 751 - 782
• Main Authors: Harrison, Rodrigo, Lagunoff, Roger
• Format: Journal Article
• Language: English
• Published: Philadelphia Wiley Periodicals, Inc 01.08.2017; Wiley-Blackwell; Blackwell Publishing Ltd
• Subjects: Bayesian analysis; Conservation; Consumption; Economic models; Economic theory; Global commons; Globalization; Resource allocation; Welfare

We model dynamic mechanisms for a global commons. Countries value both consumption and conservation of an open access resource. A country's relative value of consumption to conservation is privately observed and evolves stochastically. An optimal quota maximizes world welfare subject to being i...