Agent-Based Modeling of Common-Pool Resource Management through the Emergence of Self-Governing Institutions

Document Type : Research Paper

Authors

1 Department of Economics, University of Isfahan, Isfahan, Iran

2 Department of Economics, Faculty of Economics, University of Isfahan, Isfahan, Iran

Abstract

The tragedy of commons is always an inevitable phenomenon in common-pool resources exposed to residents' selfish perceptions. Many researchers of empirical studies believe that self-governing institutions that emerge within a society can solve the tragedy of the commons, but what still needs to be added in guiding this choice is a clearer picture of the mechanisms behind the institutional emergence in the successful management of common-pool resources. Agent-based models provide a suitable tool for this task due to their extraordinary capacity to connect micro and macro levels. This The presents study seeks to develop a simple abstract model of the institutional emergence pattern by introducing the possibility of cheat and enforcement, which has been observed in renewable common-pool resource issues. This article study uses the ADICO institutional grammar as a basic structure to model the institutional rules and define the users' strategies. Users modify their behavior through a transformational process and establish a management institution to manage common-pool resources, eventually leading to many advantages for users and common-pool resources. The results show that even within this simplified model, the self-governing institutions maintain the resource balance at a stable level and improve the average income of the users compared to the open access in all social networks.
JEL Classification:  C63, Q25, P28, O17

Keywords

References

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Journal of Economic Research (Tahghighat- E- Eghtesadi)
Volume 57, Issue 3 - Serial Number 140
October 2022
Pages 533-561

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History

  • Receive Date: 07 September 2022
  • Revise Date: 24 January 2023
  • Accept Date: 29 January 2023

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