The inter-temporal resource allocation efficiency of a property rights-based common-pool resource system is challenged by a cost externality when one user’s extraction raises the extraction cost for others. This paper builds a dynamic resource allocation model to illustrate the efficiency loss...

The inter-temporal resource allocation efficiency of a rights-based common-pool resource management system is threatened by a stock externality when one user’s extraction lowers the resource stock and raises the extraction cost for others. This paper proposes a novel decentralized rights-based...