On shared use of renewable stocks

Considered here is multi-party exploitation of common property, renewable resources. The parties play various dynamic games differing in degree of cooperation and commitment. Comparisons of steady states clarify issues on collective choice and individual welfare. Motivation stems from shared use of fish stocks which straddle the high seas between and in exclusive zones. An important instance, observed in the North-East Atlantic, is the object of computation and discussion. Not surprisingly, full cooperation yields efficiency but strategic instability. By contrast, fully noncooperative play comes out glaringly inefficient but stable. Interestingly, on middle ground, suitable quota transfers may substitute for side payments and, to tolerable measure, bring both efficiency and stability.