Regulation and evolution of compliance in common pool resources

The evolution of compliance with regulation and the evolution of a CPR stock are modeled jointly in a setup where replicator dynamics describing compliance with harvesting rules are combined with resource stock dynamics. This evolutionary approach suggests that in long-run equilibrium, coexistence of both cooperative and non-cooperative rules is possible under regulation. Stock effects on profits and a certain structure of auditing probabilities could imply the emergence of a limit cycle in areas of low stock levels, as an equilibrium outcome. It might be easier for the regulator to obtain full compliance under precommitment to fixed auditing probabilities.