To Compete or Cooperate? Intermunicipal Management of Overtourism

Abstract

Is it beneficial for municipalities to cooperate or compete with one another to attract visitors? The myopic rationality of game theory favors competition for short-term gains, whereas the nonmyopic theory of moves suggests that cooperation in this regard might be more farsighted, consensual, inclusive, and sustainable. To understand why popular cities switched to cooperation when faced with the crisis of overtourism, even though the players’ preferences about the outcomes did not change, we analyzed the case study of Amsterdam. The results indicate that the theories are appropriate in different situations. Thus, the theory of moves’ rules—alternating choices, thinking ahead in making choices—are more appropriate to finding a solution that would be stable in the future, not just one that is myopically stable in the present. We conclude that cooperation remains a more beneficial approach to managing tourism even in periods of undertourism. Policy directions are provided.