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| Rainald Borck |
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| ''Investment and the tragedy of the commons'' |
| ( 2001, Vol. 4 No.2 ) |
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| This note studies the exploitation of a common proerty resource when firms choose a technology before exploiting the resource. The sequential choice leads to overinvestment. Moreover, exploitation levels are higher than they would be if technology and labour input were chosen simultaneously. The tragedy of the commons is aggravated. |
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| Keywords: common property resources |
JEL: D6 - Welfare Economics: General
Q2 - Renewable Resources and Conservation: General |
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| Manuscript Received : Mar 19 2001 | | Manuscript Accepted : Mar 19 2001 |
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