On modeling human behavior and institutions in simple ecological economic systems

The use of stylized dynamical systems models and bifurcation analysis in modeling individual and collective behavior in two traditional societies, the Tsembaga of New Guinea and the Polynesians of Easter Island, is explored. The analysis is used to isolate key aspects of individual behavior that open up the possibility of resource overexploitation and key aspects of institutions capable of preventing overexploitation. An extension of the Brander and Taylor [Am. Econ. Rev. 88 (1998) 119–138] Easter Island model with a more realistic model for individual behavior is presented. This induces significant changes in the model dynamics which share many similarities with the Tsembaga model of Anderies [J. Theor. Biol. 192 (1998) 515–530]. Namely, in both models, the ability of agents to intensify the exploitation of the resource base to attempt to meet demands is a fundamentally destabilizing force. The model implications for present day policy issues are explored.