Sequential decision-making: Theory and evidence for irrigator water allocation trade participation and volumetric choices
AbstractGreater understanding of irrigator water trade decision-making processes provides insight into the efficient reallocation of water resources between competing uses. Water trade decisions are often modelled as single processes, although results in this paper suggest that sequential decision modelling is more appropriate. We devised a theoretical model of experienced and naïve irrigators based on the search literature, and observed sequential decision-making in water allocation trade decisions using sample-selection techniques. There is evidence of positive selection effects, which motivate different drivers for the decision to participate in water trade and the subsequent decision about how much water to buy or sell.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2013 Conference (57th), February 5-8, 2013, Sydney, Australia with number 152199.
Date of creation: Feb 2013
Date of revision:
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sequential decision-making; sample-selection; water allocation trade; Murray- Darling Basin; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
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