The Carrot or the Stick: Water Allocation Strategies for Uzbekistan
AbstractIrrigation water is a constrained common-pool resource in Uzbekistan that leads to an increasing competition over its allocation among farmers. We examine how the management of the commons in this region affects individual strategic behavior. We conduct an experiment with farmers from Uzbekistan in which two policies are analyzed, a penalty and a bonus. The paper studies a non-cooperative game and identifies the efficient use of water for irrigation. We compare our theoretical results with the experimental observations. Our findings suggest that the penalty and bonus mechanisms are effective in reducing individual water appropriation compared to the benchmark case in which these mechanisms are absent. Finally, we identify two different effects that drive subjects’ opportunistic behavior.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2012-2.
Length: 34 pages
Date of creation: May 2012
Date of revision:
Common-pool resources; Experiment; Non-Cooperative Games; Uzbekistan; Water;
Other versions of this item:
- Zaikin, Andrey & Espinola-Arredondo, Ana, 2012. "The Carrot or the Stick: Water Allocation Strategies for Uzbekistan," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124680, Agricultural and Applied Economics Association.
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-06-05 (Agricultural Economics)
- NEP-ALL-2012-06-05 (All new papers)
- NEP-CBE-2012-06-05 (Cognitive & Behavioural Economics)
- NEP-EXP-2012-06-05 (Experimental Economics)
- NEP-GTH-2012-06-05 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Milgrom & John Roberts, 1980.
"Predation, Reputation, and Entry Deterrence,"
427, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Joseph Farrell., 1987.
"Information and the Coase Theorem,"
Economics Working Papers
8747, University of California at Berkeley.
- Rapoport, Amnon & Au, Wing Tung, 2001. "Bonus and Penalty in Common Pool Resource Dilemmas under Uncertainty," Organizational Behavior and Human Decision Processes, Elsevier, vol. 85(1), pages 135-165, May.
- Barigozzi, Francesca & Villeneuve, Bertrand, 2006.
"The signaling effect of tax policy,"
Economics Papers from University Paris Dauphine
123456789/5402, Paris Dauphine University.
- Buchanan, James M, 1969. "External Diseconomies, Corrective Taxes, and Market Structure," American Economic Review, American Economic Association, vol. 59(1), pages 174-77, March.
- Milgrom, Paul & Roberts, John, 1986.
"Price and Advertising Signals of Product Quality,"
Journal of Political Economy,
University of Chicago Press, vol. 94(4), pages 796-821, August.
- KLAUS ABBINK & MOLLER, Lars Christian & SARAH O’HARA, 2005.
"The Syr Darya River Conflict: An Experimental Case Study,"
2005-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- KLAUS ABBINK & MOLLER, Lars Christian & SARAH O’HARA, 2005. "The Syr Darya River Conflict: An Experimental Case Study," Discussion Papers 2005-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Ana Espinola-Arredondo & Felix Munoz-Garcia & Jude Bayham, 2011. "Promoting Lies through Regulation: Deterrence Impacts of Flexible versus Inflexible Policy," Working Papers 2011-3, School of Economic Sciences, Washington State University.
- Casari, Marco & Plott, Charles R., 2003. "Decentralized management of common property resources: experiments with a centuries-old institution," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 217-247, June.
- Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September.
- Gardner, Roy & Herr, Andrew & Ostrom, Elinor & Walker, James A., 2000. "The power and limitations of proportional cutbacks in common-pool resources," Journal of Development Economics, Elsevier, vol. 62(2), pages 515-533, August.
- Xepapadeas, A. P., 1991. "Environmental policy under imperfect information: Incentives and moral hazard," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 113-126, March.
- Walker, James M, et al, 2000. "Collective Choice in the Commons: Experimental Results on Proposed Allocation Rules and Votes," Economic Journal, Royal Economic Society, vol. 110(460), pages 212-34, January.
- Ostrom, Elinor, 2006. "The value-added of laboratory experiments for the study of institutions and common-pool resources," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 149-163, October.
- Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
- David B. Ridley, 2008.
"Herding versus Hotelling: Market Entry with Costly Information,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 17(3), pages 607-631, 09.
- David B. Ridley, 2009. "Herding versus Hotelling: Market Entry with Costly Information," Levine's Working Paper Archive 814577000000000174, David K. Levine.
- Elinor Ostrom, 2011. "Reflections on "Some Unsettled Problems of Irrigation"," American Economic Review, American Economic Association, vol. 101(1), pages 49-63, February.
- Stavins, Robert N., 1996. "Correlated Uncertainty and Policy Instrument Choice," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 218-232, March.
- Apesteguia, Jose, 2006. "Does information matter in the commons?: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 55-69, May.
- Herr, Andrew & Gardner, Roy & Walker, James M., 1997. "An Experimental Study of Time-Independent and Time-Dependent Externalities in the Commons," Games and Economic Behavior, Elsevier, vol. 19(1), pages 77-96, April.
- Walker, James M. & Gardner, Roy & Ostrom, Elinor, 1990. "Rent dissipation in a limited-access common-pool resource: Experimental evidence," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 203-211, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Danielle Engelhardt).
If references are entirely missing, you can add them using this form.