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Distributing the Benefits from the Commons: A Square‐Root Formula
Author(s) -
Silvestre Joaquim
Publication year - 1998
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00126
Subject(s) - value (mathematics) , economics , fish <actinopterygii> , commons , microeconomics , economic surplus , resource (disambiguation) , distribution (mathematics) , fishery , agricultural economics , statistics , ecology , mathematics , welfare , biology , market economy , computer science , computer network , mathematical analysis
What should be the distribution of the benefits of a fishery (or common‐pool resource) where a group of fishers catch fish and sell it to consumers? I propose that, for each person i , where i is a fisher or a consumer, i's returns should be proportional to i's contributions . Unexpectedly, this implies that the fraction of benefits accruing to consumers must be √value of total output of fish/√value of total outputs of fish+√value of total fishers' labor.