There is more than a verbal tie between the words common, community, and communication.
-John Dewey
Abstract
Organizing individual appropriators into output sharing groups has been found to effectively solve the tragedy of the commons problem. We experimentally investigate the robustness of this solution by introducing different channels of communication that naturally arise from group competitions. In the absence of communication, we confirm that output sharing can introduce sufficient free riding to offset over-harvesting and results in full efficiency. Allowing local communication within output-sharing groups substantially decreases this efficiency enhancement because it reduces free riding and boosts between-group competition. Yet the efficiency level is still significantly higher than that achieved when global communication is allowed among all appropriators in a conventional common pool resource without output sharing. The efficiency-reducing effect of local communication is mitigated when random partners instead of fixed partners are sharing output over time, and is nearly eliminated when random partners are formed with users who belong to different communication groups.
Similar content being viewed by others
Notes
Note that throughout this paper we use the term “communication” to mean “non-binding and costless communication”.
Most studies have examined the effect of communication in inter-group games with fixed groups and a fixed prize (Rapoport and Bornstein 1989; Schram and Sonnemans 1996; Cason et al. 2012; Leibbrandt and Sääksvuori 2012; Zhang 2012). Sutter and Strassmair (2009) examine the impact of communication in a group tournament in which the prize is not fixed and is paid by the losing team and shared equally in the winning team. They find that free riding dominates when teams cannot communicate or can only communicate with members of other teams. Communication within teams, on the other hand, increases individual contributions and efficiency. Contrary to theirs, in our experiment incentives are not monotonic as higher group contributions may lead to lower efficiency due to the congestion externality and the non-linear payoff of the CPR.
In this context a treatment is a specific combination of levels of the factors in the experiment [see “Treatment” in Statistics and Probability Dictionary (Stat Trek 2017)]. Factors are variables that have two or more discrete levels. For example, in this experiment output sharing is a factor that can take on a Boolean value of true or false. Similarly, local communication also is a factor that can take on a Boolean value of true or false. For the CPR treatment both output sharing and local communication factors are false. All of the factors used in this study along with their combinations (i.e. treatments) will be described below and are summarized in Table 1.
Janssen et al. (2010) introduce chat-room communication into a CPR setting in which it is possible to destroy the CPR by over appropriation. Chat-room communication is successful in forestalling destruction of the CPR and raising profit. This result is similar to the results reported by Muller and Vickers (1996) who use face-to-face communication. Bochet et al. (2006) compare different forms of communication in public goods laboratory experiments and find little difference between the effects of face-to-face communication and verbal communication through a chat room.
Prior to the first decision round, individuals are given 4 min to send messages. Prior to the second and third decision rounds, individuals are given 3 min to communicate. Prior to the fourth round this is set at 2 min and from the fifth through the fifteenth rounds, communication is limited to 1 min. These time limits were based on debriefing subjects after several pilot sessions.
See section 1 of Appendix III for a derivation of the equilibrium results. See Schott et al. (2007) for the derivation of the optimal effort to allocate to appropriation from the common pool.
There is no unique individual extraction effort. See section 2 of Appendix III for this derivation.
Adding an additional observation to the data for the basic CPR treatment, the Fixed-Partners treatment and the Random-Partners treatment reported in Schott et al. (2007) does not affect the results obtained by Schott et al. (2007) that the system effort for each treatment is not different from the predicted values. In all cases the p values for the statistical tests are greater than 0.10 regardless of whether the additional observation is added.
All reported p values are based on two-sided tests unless otherwise stated. One-sided tests are used only when the prediction implies a direction for the change.
A test comparing the data for the mean system efforts of the two treatments supports the null hypothesis that there is no difference between the two means (F test, \(p = 0.299\), Mann–Whitney U test, \(p = 0.343\)).
References
Ahn TK, Ostrom E, Walker J (2010) A common-pool resource experiment with postgraduate subjects from 41 countries. Ecol Econ 69:2624–2633
Atkinson S, Stanley L, Tschirhart J (1988) Revenue sharing as an incentive in an agency problem: an example from the national football league. RAND J Econ 19:27–43
Balliet D (2010) Communication and cooperation in social dilemmas: a meta-analytic review. J Confl Res 54(1):39–57
Baye MR, Hoppe HC (2003) The strategic equivalence of rent-seeking, innovation, and patent-race games. Games Econ Behav 44(2):217–226
Bender A, Kägi W, Mohr E (2002) Informal insurance and sustainable management of common pool marine resources in Ha’apai, Tonga. Econ Dev Cult Change 50(2):427–439
Bicchieri C (2002) Covenants without swords: group identity, norms, and communication in social dilemmas. Ration Soc 14(2):192–228
Bochet O, Page T, Putterman L (2006) Communication and punishment in voluntary contribution experiments. J Econ Behav Organ 60(1):11–26
Boning B, Ichniowski C, Shaw K (2007) Opportunity counts: teams and the effectiveness of production incentives. J Labor Econ 25:613–650
Carpenter J, Seki E (2011) Do social preferences increase productivity? Field experimental evidence from fishermen in Toyoma Bay. Econ Inq 49(2):612–630
Cason TN, Sheremeta RM, Zhang J (2012) Communication and efficiency in competitive coordination games. Games Econ Behav 76(2012):26–43
Chakraborty RN (2004) Sharing rules and the commons: evidence from Ha’apai, Tonga. Environ Dev Econ 9:455–472
Chan KS, Mestelman S, Moir R, Muller RA (1999) Heterogeneity and the voluntary provision of public goods. Exp Econ 2:5–30
Cherry J, Salant S, Uler N (2015) Experimental departures from self-interest when competing partnerships share output. Exp Econ 18:89–115
Chung T-Y (1996) Rent-seeking contest when the prize increases with aggregate efforts. Public Choice 87(1–2):55–66
Collings P, Wenzel G, Condon RG (1998) Modern food sharing networks and community integration in the Central Canadian Arctic. Arctic 51(4):301–314
Dietl H, Franck E, Lang M (2008) Overinvestment in team sports: a contest theory model. Scott J Polit Econ 55:353–368
Gunnthorsdottir A, Rapoport A (2006) Embedding social dilemmas in intergroup competition reduces free-riding. Organ Behav Hum Decis Process 101:184–199
Hackett S, Schlager E, Walker JM (1994) The role of communication in resolving commons dilemmas: experimental evidence with heterogeneous appropriators. J Environ Econ Manag 27(2):99–126
Harder MT, Wenzel GW (2012) Inuit subsistence, social economy and food security in Clyde River, Nunavut. Arctic 65(3):305–318
Heintzelman MD, Salant SW, Schott S (2009) Putting free-riding to work: a partnership solution to the common-property problem. J Environ Econ Manag 57(3):309–320
Isaac RM, Walker JM (1988) Communication and free-riding behavior: the voluntary contribution mechanism. Econ Inq 26:586–608
Janssen M, Holahan R, Lee A, Ostrom E (2010) Lab experiments for the study of social–ecological systems. Science 328(5978):613–617
Kagi W (2001) The tragedy of the commons revisited: sharing as a means to avoid environmental ruin. IWOE Discussion Paper 91, Institute for Economy and the Environment, University of St. Gallen
Kinukawa S, Saijo T, Une M (2000) Partial communication in a voluntary-contribution-mechanism experiment. Pac Econ Rev 5(3):411–428
Ledyard JO (1995) Public goods; a survey of experimental research. In: Kagel J, Roth A (eds) Handbook of experimental economics. Princeton University Press, Princeton
Leibbrandt A, Sääksvuori L (2012) Communication in intergroup conflicts. Eur Econ Rev 56:1136–1147
Moldovanu B (1992) Coalition-proof Nash equilibria and the core in three-player games. Games Econ Behav 4:565–581
Muller RA, Vickers M (1996) Communication in a common pool resource environment with probabilistic destruction. McMaster University, Department of Economics, Working Paper 96-06
Ostrom E, Gardner R, Walker J (1994) Rules, games and common-pool resources. The University of Michigan Press, Ann Arbor
Platteau J-P, Seki E (2001) Community arrangements to overcome market failure: pooling groups in Japanese fisheries. In: Aoki M, Hayami Y (eds) Communities and markets in economic development. Clarendon Press, Oxford, pp 344–403
Rapoport A, Bornstein G (1989) Solving public goods problems in competition between equal and unequal size groups. J Confl Resolut 33:460–479
Sahlins M (1972) Stone age economics. Aldine de Gruyter, New York
Sally D (1995) Conversation and cooperation in social dilemmas: a meta-analysis of experiments from 1958 to 1992. Ration Soc 7:58–92
Schott S (2001) A partnership solution to the tragedy of the commons. In: 4th Toulouse conference on environment and resource economics, Toulouse, France
Schott S, Buckley N, Mestelman S, Muller RA (2007) Output sharing in partnerships as a common pool resource management instrument. Environ Resour Econ 37(4):697–711
Schram A, Sonnemans J (1996) Why people vote: experimental evidence. J Econ Psychol 17:417–442
Sutter M, Strassmair C (2009) Communication, cooperation and collusion in team tournaments: an experimental study. Games Econ Behav 66(1):506–525
Stat Trek (2017) Statistics and probability theory: treatments. Retrieved February 6, 2017 from http://stattrek.com/statistics/dictionary.aspx?definition=Treatment
Yamamoto T (1995) Development of community-based fishery management system in Japan. Mar Resour Econ 10:21–34
Zhang J (2012) Communication in asymmetric group competition over public goods. University of Zurich, Working Paper Series, No. 69
Author information
Authors and Affiliations
Corresponding author
Electronic supplementary material
Below is the link to the electronic supplementary material.
Rights and permissions
About this article
Cite this article
Buckley, N.J., Mestelman, S., Muller, R.A. et al. The Effects of Communication on the Partnership Solution to the Commons. Environ Resource Econ 70, 363–380 (2018). https://doi.org/10.1007/s10640-017-0124-9
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10640-017-0124-9
Keywords
- Common pool resources
- Output sharing
- Partnership solution
- Communication
- Competition
- Group behavior
- Partners and strangers
- Experiments