We consider the redistributive effects of privatizing a resource previously exploited under free access. We assume that illegal extraction is punished but that the sanction is bounded by individual's wealth. First, we show that a segment of intermediate-wealth individuals is the most adversely...

This paper proposes a model of natural-resource exploitation when private ownership requires costly enforcement activities. Enforcement costs are endogenized as the outcome of a game between the owner of a resource and encroachers. In equilibrium, the analysis suggests that in order to deter...