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Distributing the Benefits from the Commons: A Square-Foot Formula

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  • Silvestre, J.

Abstract

What should be the distribution of the benefits of a fishery (or common-pool resource) where a group of fishers catch fish and sell it to consumers? The author proposes that, for each person i, where i is a fisher or a consumer, i's returns should be proportional to i's contributions. Unexpectedly, this implies that the fraction of benefits accruing to consumers must be equal to the square root of the value of total output of fish divided by (the square root of the value of total outputs of fish plus the square root of the value of total fishers' labor). Copyright 1998 by The editors of the Scandinavian Journal of Economics.
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Suggested Citation

  • Silvestre, J., 1995. "Distributing the Benefits from the Commons: A Square-Foot Formula," Department of Economics 95-06, California Davis - Department of Economics.
    • Handle: RePEc:fth:caldec:95-06
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    Keywords

    RESOURCE ALLOCATION ; SOCIAL JUSTICE ; CONSUMPTION ; MATHEMATICS;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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