We study a novel, repeated common pool resource game in which current resource stocks depend on resource extraction in previous periods. Our model shows that for a sufficiently high regrowth rate, there is no commons dilemma: the resource will be preserved indefinitely in equilibrium. Lower...

We develop a unifying explanation for prosocial behavior. We argue that people care not about others’ payoffs per se, but whether their own behavior accords with social norms. Individuals who are sensitive to norms will adhere to them so long as they observe others doing the same. A model...

Rules are thought to persist to the extent that the direct benefits of having them (e.g. reduced transactions costs) exceed the costs of enforcement and of occasional misapplications. We argue that a second crucial role of rules is as screening mechanisms for identifying cooperative types. Thus...

Theories of norm-dependent utility assume commonly known injunctive norms that rank feasible outcomes by their normative valence, but as yet normative valences have only been measured experimentally. We provide a theoretical foundation that assigns a normative valence to each outcome based on...

We study a dynamic common pool resource game in which current resource stock depends on resource extraction in the previous period. Our model shows that for a sufficiently high regrowth rate, there is no commons dilemma: the resource will be preserved indefinitely in equilibrium. Lower growth...