quality:corruption, linguistic:voice_change
Non-altruistic social sanctions (common property regimes)

Both punishment and regulation by the state work relatively badly under imperfect information, where people cannot observe the behavior of others. Often common property regimes which members establish through bargaining have more information about the specific common pool resource which they are managing than outsiders. For this reason, and because common property regimes can avoid the principal-agent problem, the specific local knowledge within common property regimes typically enables them to outperform regulations designed by outside technical experts. Nevertheless, the best performance is typically achieved when people in common property regimes consult with governments and technical experts while deciding on the rules and design of their firm, thereby combining local and technical knowledge.