Norms as a Solution to the Tragedy of the Commons: A Co-evolutionary Model

Abstract

This paper develops a theoretical model to study when a society can rely on the cultural transmission of norms to preserve a common-pool resource (CPR). The model utilizes evolutionary game theory to endogenize the formation of personal, social, and descriptive norms, thereby unifying existing economic theories on norm evolution. By studying this model of norm evolution in a CPR game, we introduce an additional dynamic dimension, namely the resource stock. This allows us to derive insights regarding the dynamic interplay of behavior, norms, and the resource stock.