Greed, Efficiency and Fairness in Resource Management Situations

Whereas rational choice theory predicts that harvesting in resource management situations is completely determined by greed, being the dominant choice, the GEF hypothesis predicts that although individuals are greedy (G), their greed is constrained by two other motives: the desire to use the resource efficiently (E) and the desire to realize fairness (F), referring to equal outcomes for all participants. The GEF hypothesis was corroborated by results from several computer-controlled experiments. It can account for (a) the pattern of individual responses to choices made by other group members, the impact of (b) environmental uncertainty and (c) social uncertainty, and (d) the conditions under which freedom of access is abandoned in favor of leadership.