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A Mechanism for Inducing Cooperation in Noncooperative Environments: Theory and Applications
Author(s) -
ELLIS CHRISTOPHER J.,
VAN DEN NOUWELAND ANNE
Publication year - 2006
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2006.00251.x
Subject(s) - tragedy of the commons , mechanism (biology) , economics , construct (python library) , microeconomics , game theory , range (aeronautics) , commons , mathematical economics , neoclassical economics , industrial organization , computer science , ecology , biology , epistemology , philosophy , composite material , programming language , materials science
We construct a market‐based mechanism that induces players in a noncooperative game to make the same choices as characterize cooperation. We then argue that this mechanism is applicable to a wide range of economic questions and illustrate this claim using the problem of “The Tragedy of the Commons.”