On Equilibrium Analysis in Common-Pool Resource Game with Population Uncertainty

Abstract

In this study, we examine the effects of population uncertainty on the equilibrium in common-pool resource game. We create a hypothetical strategic environment where each player was randomly drawn from a pool of potential players. It shows that the equilibrium investment is higher when the number of opponents is a common knowledge than when the number of opponents is uncertain. Moreover, population uncertainty in common-pool resource game might prevent the tragedy of the commons.