WEALTH INEQUALITY AND EFFICIENCY IN THE COMMONS, PART II - THE REGULATED CASE

Does more inequality lead to more efficiency in the management of comm on property resources? To answer this question, an attempt is made to develop relevant theoretical models and to articulate them with empiri cal evidence drawn mainly from social science studies. The paper is di vided into two parts. In this, the second part, it is shown that inequ ality tends to amplify the distributive effects of regulation when the latter is carried out through the use of second best instruments. As a result efficiency gains from regulation must decrease as inequality increases, for all users to gain from such regulation.