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Equity–Efficiency Optimizing Resource Allocation: The Role of Time Preferences in a Repeated Irrigation Game

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  • Bjorn Van Campenhout
  • Ben D'Exelle
  • Els Lecoutere

Abstract

type="main" xml:id="obes12058-abs-0001"> We study repeated water allocation decisions among small scale irrigation users in Tanzania. In a treatment replicating water scarcity conditions, convexities in production make that substantial efficiency gains can be obtained by deviating from equal sharing, leading to an equity–efficiency trade-off. In a repeated game setting, it becomes possible to reconcile efficiency with equity by rotating the person who receives the largest share, but such a strategy requires a longer run perspective. Correlating experimental data from an irrigation game with individual time preference data, we find that less patient irrigators are less likely to use a rotation strategy.

Suggested Citation

  • Bjorn Van Campenhout & Ben D'Exelle & Els Lecoutere, 2015. "Equity–Efficiency Optimizing Resource Allocation: The Role of Time Preferences in a Repeated Irrigation Game," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(2), pages 234-253, April.
  • Handle: RePEc:bla:obuest:v:77:y:2015:i:2:p:234-253
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    File URL: http://hdl.handle.net/10.1111/obes.2015.77.issue-2
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    Cited by:

    1. Hussein El Hajj & Douglas R. Bish & Ebru K. Bish, 2021. "Equity in genetic newborn screening," Naval Research Logistics (NRL), John Wiley & Sons, vol. 68(1), pages 44-64, February.
    2. Lina Zhang & Xiaoling Zhang & Fengping Wu & Qinghua Pang, 2020. "Basin Initial Water Rights Allocation under Multiple Uncertainties: a Trade-off Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(3), pages 955-988, February.
    3. Benjamin Ouvrard & Arnaud Reynaud & Stéphane Cezera & Alban Thomas & Dishant Jojit James & Murudaiah Shivamurthy, 2023. "Distributive Justice in the Field: How do Indian Farmers Share Water? ," Working Papers hal-04150233, HAL.

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