16.3. The Model
365
AR
w
Punishment
Fe
Fd
Fe
Cost of
AR
B
N
Fd
Fe
Fd
Fe
FIGURE 16.3
if there are no defectors present. Otherwise, enforcers do worse than cooperators, since they bear the cost of punishing defectors (Sethi and Somanathan 1993). This implies that it is unlikely that the three strategies can
coexist in a stable social equilibrium .
The difference between the payoffs that belong to each strategy and the
average payoff level determines the number of fishermen that follow each
strategy. This decision rule is described in equation (3).
DFlO= FlO (OlO - OW); i = c, d, e.
(3)