“Entanglement” and the Exploitation of Common Pool Resources: A Quantum Solution to the Prisoner’s Dilemma

Abstract

The overexploitation of common pool resources is frequently associated with open access regimes in which each resource user operates independently of all other resource users. The outcome is a Nash equilibrium of the prisoner’s dilemma. Restricted access regimes of the sort identified by Ostrom and colleagues typically ensure that individual resource users do not operate independently. Taking a quantum approach to the theory of games, we argue that the institutional arrangements involved in common pool resource management imply the “entanglement” of the strategies of resource users. For a very simple case — two firms exploiting a common pool fishery — we show that there exists an “entanglement” mechanism that assures the cooperative outcome.