We study extinction in a commons problem in which agents have access to capital markets. When the commons grows more … quickly than the interest rate, multiple equilibria are found for intermediate commons endowments. In one of these, extinction …' equilibrium, increases it in the other equilibrium in which the commons is eventually depleted, and expands the set of commons …

We study extinction in a commons problem in which agents have access to capital markets. When the commons grows more … instantly depletes the commons. Without markets - the classic environment - equilibria are unique; extinction dates and welfare … quickly than the interest rate, multiple equilibria are found for intermediate commons endowments. In one of these, welfare …