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CHAPTER 1 Rules, Games, and Common-Poo! Resource Problems Jn June 1991, te Ocean Hound snk in ck fo jut ofthe Dover cout, ling all ve members oer ceew with er. This wa othe rt tine rng 1991 tht ashing ship tn Briar Hatori Expand sake Dui the festsix oats of 991, more than hit fishes were st Fain i ays Aingeouscecopaia, ut somthing diferenewas happening About the Airing he Hs i oats of 1991. No single cause appear io under the oui ofthe deat ate dving 1991. “But onthe docks of Beha an Caher pots along henge cost of southwest England there i alk tat [owing compton in the skins sounds an bar consi inc tore ‘nay be Ling some Hero fake more chances with wen and hit tate” Wer Yard Times, 13 Sepeber 1991 “The Bethan Het ambered about ny bot in 1981, almost twice svhar it as 15S. Moa payenent on Bats ose fom 3,116 (on 5200.00 dein 1987 to 8,29 in 1991, Fel owt $1,672 pr week in 981 ompated wih $3,128 ost one yee pie. al new rae the Royal ation! Msn to Deep Sex Fishermen —the Salvation Arty of he 4 — Inet that be bal bea in is wo “or 25 years ad ths the worst eco yet” bid) net sail tht ress ay ogg nil {sen opin more ime and take ot rik. Tn Califia ring the nummer of 19, anther instanceof exes loveseat i the expan of source oe The generators uly Pie Gas and Hlcric to tap the petbemal resource at The Gs lbeted 130 Kons non f Sun Fancsco, 10 produce (wo thovsand rmegawats of power, were actully yeding only een indie megawatt, Even worse, the pestre inthe well war doping fast appear the Undying eblem spl. "The ear Beneath thse nore Calo "moana runsig dy” Arar, toto for Te Gyr ri By the mi rate 1950s, per cap ty apo ball ts 1987 vl A $3.3 bition este isin danger ting moa white elephant” (Since, 12 July 1991, 13 ‘Te basic problem tae by ech foe stores is overlap f= Tree Krahn tof Ban a jmp ro foe Bos ‘Say at ih oe ee, haut fal eset in pncaing cope a Tbe Gears obi betwen 98 and 1991, a recy economic nts rey te US. goverment. In 98, her oe 1 somting wots with 2 onpet of 92 megawatts. By 191 znnting capacity ped ©2048 meena, me te ives ‘Bon oft ale ana erlers or desley combi). 7A ‘rte fo may sts ne eae wa be ahi comment of ‘es Box of Cape Copano Sas ost on oft rms ied “he mcemhes wad exenive rare captain, stated by bio Har nd The Coys, ae oo ola or une evens. Te ‘Rapurontoncatat ih eum, or oer eserce ns om a ese Syne with cs crs in man uses a vse eure eM rcpt ine an pce Ase df ee, terse yo ae Mee poeamces(CPRS) wes cacong pt poate Tinting speopintion is of exiting sie snontiva ata mses impale esource sem sorta ste aay® Ifecaebowcer ius py sng CPR eve 050 proiee the tape fouls of Basham Harbor or The Gases As documented argc ioc undinmany ect bene Bees 169; Blan Broke {De Blomus 1992 Brey 1982: McCay ad Acheson 1987; Oxon {O91 V. Oswom, Fey aad Rem 19% Peron 198, Segupe 10, ivi is many CPR sss ao gi eteome. Tn car 13, or example, Wil Blut dexcbes bow water produc pumping under rm ass pod sie nr. Snouter Cena sop hang ens ad ears Cceage ins pumping ce ha ected ha sins Ate eh tum may wn he esp” Ata er nt, weve, al ut Oo: gnc bi, np a sn wane Sofa courtsysem an hint of peal sis eel Shc oot tsi Base a en rene with dsrcion Wee itch ond shape drng ttn Sogn ether Calor tat wae prods wee sl dw on pls nese to cope with years Eis ita wa dora he Common, a tok bse on he il ages of he esa rogam hats oly latest hs ay, E- Onto (950) desi eis fly edn CPR and th inion ule in-se— that eal individual oie these ours over lng pride of ne. ‘Governing the Common: chalenged he intimin wea te metaphors ‘ommny app 0 CPR sivas oped sutoimal sand eds ‘on ofthe esoure: (1) G- Harkins taped of the commons (1958), 2) (Olson's ogi of colletive action (1965), and (3) the Preaer’ Dilemma ‘ume. The arguments nid oat Hardin's and Oton's work can be gute {sph or anderanding the bs os faced in man, but ll, CPR Sustons. The simple structure ofthe Posner's Dismema games ef Avice for demrseting the conic eter ivi tonality do) ‘oni. When inivdals ith ace rote i from hese (CPR when hey canst commancte and exublsh ares ls ad Suatels and when mo ober suthry has stable and enforced ste ‘alex preltios of sdbopinal ee ofthe rsouree wr sy fo be comet {Users wll overapproprie inva wil defect on oe noe, nd teh ta exlective tenets wil ot be achive To many saws wl be the teat Ta Governing the Commons mers, i was shown that in any ine stances nds joint wig 4 CPR commie with one athe sd ‘stb agreed pom sand sap tt imprinter jot ou, By devising their vn mle ime, nid ning sich CPRS have ove come the “aged ofthe commons” Fare, were the istuios they ‘evince bon nesained over leg period tine, is posible to describe 1 series of design principles tha haracez the robust stuns an ‘sey te varaber mont kly be wscaed with sociation "he cuTeH sy follows the reseush Iaing Upto Governing the ‘Commons a part aati foto whestané how individual eave in'CPR suas ike Brita Harbor, The Geyser. ad the grountwater ‘sins of suthr Califo. Our approach bas ben io ales CPR sues sing the theory of N-peon, nly repented games. Oar mde of nays Ins bento embed the suing pares bode station rmework, ‘tr apyoach io tesingadevaesting ee models tough ewe oth experimental and ld dit. By sting fora model ig the cone em Tonment fat experinestl abrir. we are ale exami more cloly the conditions under wich the theoretical els died by noncooperative ame theory ae spore, and where the hear fas By sali emp St sts rom ou Bed Stings shor, gato system foes ard aniversary oe findings from contol experiment. Some of our empl ndings are onset with comely accepted theory. eae: re anomalous, nat ur Nedings are sulcealyperving that wee faced with he mad bgt tne prs of formalin «beter postive explanation fr individual Be BE ETCom stations than carey exis in ceed thon ut we af geting asad of cuncve. Before tring wa discussion of be tesa foundation for asp, an scusin of ests from exe PRLNST oat ld sin, We moe o ay ot our ition of key fers and The cena question that we aes in tis volume ‘conceptual Foundations and Key Terms Ccommon-Poot Resources and Other Types of Goods “This sty focuses on a prc clas of gad event nthe word that Teen importa tbs, These o aries ae (1) the cl of ‘Ring inves rom Benen fre ood and (2) he subactabity ‘Tne tenets commmed by ne indian rom those vale totes, Let (sds ch tebe. Exclusion ‘helps and evens in the word ht individuals value deri erm of ‘ie Ey cecal ts toexlaeo it ptetal becca ser) om Rteamng them once ty are ovis bY nature or hough heats of ‘Saunas Fencing and pckaping ae th ultimate physical means of rising prea benciarcfom 3 god. Tobe efectie, bowewer, fens ‘Aland paskaing eos mat be Baked by set of propery ight that fe ‘eho to dfend nan economic an ga ses) inh gal tm ai {bie wo ineals within county llows ht de Dea i eoromic Tensinity of enteing or inting ase By otal Decisis derived (Sch ion physical tue oh ool and fom the insttos wd in 2 paula joriicton Surat “Te poe un evens that dvs alas ier in terms of he deree ‘crac of en pens ne om tha avaible tbe wed by the. Ate dabrman hs # fon of, those fh are not vale for other fieamen One ober hand oe person se ofa weather reas dos ot ‘Seceth vailaiy f th information a tht esc brs 1 Four Types of Goode Amaying these aus of excanion and subtractbiiy provides a Yo Ae eScaton of fortes of sons 5 shown in gue 11. The For Fingrofgoods so Wettod—ptvatc public, and tol eps und common: ‘sunray aw oh onc [nase | Cement any |For cose | int Go Fie. 1%. A gurl dnsenton of goods pol ressuces—are broad categories that conan consierable variation ‘hin hem (V. Ostrom and Osrom 197). They ar simi to for large “Sc te morn ato ar ena a en fn te tal vant present thin in an economic an lea sense a By suai, ae the commodities Jest eer! kta clonal emi Chery of mrt, Pats pools te the opposite of pate goods in regard to th trite. Toll foe (Somat refer oa club goo) shire wih private peo the ie ‘ne of excinion and wih public god the rane lack of mabey, Conon po! esse with ie gods he ati “This honk fost on common po rss. Thi fru nme ese we onsr the ter types of gous to Be nite Rte x he eae i sum sey andrundng han bse lcd w CPRG i Mel 4 ‘Swanage ‘vn th we est of CPR ht xt ed ‘ring, he tno ndersudng shor ele os lof Es toon ea an f cone pay lng. We fois CPR sctlgs ‘hee he mals ole ma eet ie than sil, Session ‘While imeestin CPR rotcns exit tha imolve single ens, mmo the important quested wobec of CPR isle stains whe ‘oflmavdas me te tne sae ove en eran slain ing pista Hecclares fn aning 8 CPR i 3 wnt robin do many cae Insect athe shear eo ‘tre aecly de pc the oe CPR or etal, el lecing nab faery lone ne oe eprint

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