PROPERTY-RIGHTS AND ECONOMIC LOGIC OF WILDLIFE INSTITUTIONS

The complex mix of legal, regulatory, and contractual rules that make up wildlife institutions is illuminated by examining the structure of property rights to wildlife resources. This observation led to the development of a model which focuses on the value of wildlife relative to other uses of land as well as the ability of private land-owners to contract for control of species that inhabit their land. Because contracting for ownership is costly, optimal ownership rights are likely to be distributed among many parties, both private and public. Government actions are seen as second-best solutions to private contracting problems, reducing wealth dissipation that results from incomplete ownership. Evidence shows that private hunting rights, variation in state hunting regulations, and legal classification of species vary according to differences in land ownership patterns, population territories, and wildlife values.