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Equity Basis Selection in Allocation Environments: An Empirical Analysis

  • Aadland, David
  • Koplin, Van

Successful formation and long-term stability of cooperative ventures is often linked to the perceived fairness of the cost and resource allocations that these ventures employ. Indeed, the lack of a consensus over what basis should be used for gauging equitable allocation can undermine the prospects for collaboration. We use irrigation cost sharing as a context for examining the equity basis selections of cooperative ventures that successfully form and endure. Our analysis reveals that these selections are explained by features of the cooperative environment and inequities in the derived benefits from the irrigation water.

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File URL: http://purl.umn.edu/117146
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 36 (2011)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:jlaare:117146
Contact details of provider: Web page: http://waeaonline.org/

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  1. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
  2. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
  3. Ray P. Teele, 1900. "Water Rights in the Arid West," Journal of Political Economy, University of Chicago Press, vol. 8, pages 524.
  4. Aadland, David & Kolpin, Van, 1998. "Shared irrigation costs: An empirical and axiomatic analysis," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 203-218, March.
  5. Dayton-Johnson, Jeff, 2000. "Choosing rules to govern the commons: a model with evidence from Mexico," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 19-41, May.
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