The tragedy of the commons in a fishery when relative performance matters

@inproceedings{Long2012TheTO,
  title={The tragedy of the commons in a fishery when relative performance matters},
  author={Ngo Van Long and Stephanie F. McWhinnie},
  year={2012}
}
This paper presents a simple model of a common access fishery where fishermen care about relative performance as well as absolute profits. Our model captures the idea that status (which depends on relative performance) in a community influences a person's well-being. In our main specification, relative performance depends on the absolute difference in after-tax profits. We show that overharvesting resulting from the tragedy of the commons problem is exacerbated by the desire for higher relative… CONTINUE READING