Is Cooperation Costly with Diverse Economic Agents?
Is Cooperation Costly with Diverse Economic Agents?
Under the Nepal forestry programme, open-access forests have been transferred to forest user groups under a community-based property rights regime. This chapter examines the relationship between group heterogeneity and transaction costs on the one hand, and, on the other, the transaction costs with the degree of collective action in community-based forest management. While only a few measures of inequality seemed to influence the extent of transaction costs, forest user groups with higher transaction costs incurred by their community members appear to have lower levels of collective action.
Keywords: transaction costs, heterogeneity, community forestry, property rights, institutions, Nepal
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