IDEAS home Printed from https://ideas.repec.org/a/eee/agiwat/v255y2021ics0378377421003097.html
   My bibliography  Save this article

A game-theoretic model of water theft during a drought

Author

Listed:
  • Batabyal, Amitrajeet A.
  • Beladi, Hamid

Abstract

We study water use by two geographically proximate farmers in a particular region during a drought. The two farmers each have an endowment of time that can be used either to produce water or to steal water. The price of water is exogenously given. The goal of the two farmers is to maximize their wealth from water production and water theft. In this setting, we perform three tasks. First, we determine the Nash equilibrium of the game-theoretic interaction between the two farmers. Second, we study how this equilibrium depends on the ease with which water can be stolen. Finally, we show how the preceding equilibrium is impacted when there is no water theft and then we determine the maximum amount that a farmer would be willing to pay to prevent theft.

Suggested Citation

  • Batabyal, Amitrajeet A. & Beladi, Hamid, 2021. "A game-theoretic model of water theft during a drought," Agricultural Water Management, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:agiwat:v:255:y:2021:i:c:s0378377421003097
    DOI: 10.1016/j.agwat.2021.107044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378377421003097
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agwat.2021.107044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Meinzen-Dick, Ruth, 2014. "Property rights and sustainable irrigation: A developing country perspective," Agricultural Water Management, Elsevier, vol. 145(C), pages 23-31.
    2. Ray, Isha & Williams, Jeffrey, 2002. "Locational asymmetry and the potential for cooperation on a canal," Journal of Development Economics, Elsevier, vol. 67(1), pages 129-155, February.
    3. A. Loch & C. D. Pérez-Blanco & E. Carmody & V. Felbab-Brown & D. Adamson & C. Seidl, 2020. "Grand theft water and the calculus of compliance," Nature Sustainability, Nature, vol. 3(12), pages 1012-1018, December.
    4. Gabriel A. Sampaio Morais & Felipe F. Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "Irrigation, Technical Efficiency, and Farm Size: The Case of Brazil," Sustainability, MDPI, vol. 13(3), pages 1-21, January.
    5. Mayumi, Kozo & Giampietro, Mario, 2010. "Dimensions and logarithmic function in economics: A short critical analysis," Ecological Economics, Elsevier, vol. 69(8), pages 1604-1609, June.
    6. Isha Ray & Jeffrey Williams, 1999. "Evaluation of Price Policy in the Presence of Water Theft," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 928-941.
    7. Reza Oladi, 2005. "Stable Tariffs and Retaliations," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 205-215, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean-Paul Azam & Jean-Daniel Rinaud, 2000. "Encroached Entitlements: Corruption and Appropriation of Irrigation Water in Southern Pun jab Pakistan)," Development Working Papers 144, Centro Studi Luca d'Agliano, University of Milano.
    2. Bolinches, Antonio & Blanco-Gutiérrez, Irene & Zubelzu, Sergio & Esteve, Paloma & Gómez-Ramos, Almudena, 2022. "A method for the prioritization of water reuse projects in agriculture irrigation," Agricultural Water Management, Elsevier, vol. 263(C).
    3. Hanan G. Jacoby & Ghazala Mansuri, 2018. "Governing the Commons? Water and Power in Pakistan’s Indus Basin," Working Papers id:12933, eSocialSciences.
    4. Kelly, T.D. & Foster, T. & Schultz, David M., 2023. "Assessing the value of adapting irrigation strategies within the season," Agricultural Water Management, Elsevier, vol. 275(C).
    5. Changhai Qin & Shan Jiang & Yong Zhao & Yongnan Zhu & Qingming Wang & Lizhen Wang & Junlin Qu & Ming Wang, 2022. "Research on Water Rights Trading and Pricing Model between Agriculture and Energy Development in Ningxia, China," Sustainability, MDPI, vol. 14(23), pages 1-15, November.
    6. Beladi, Hamid & Marjit, Sugata & Weiher, Kenneth, 2011. "An analysis of the demand for skill in a growing economy," Economic Modelling, Elsevier, vol. 28(4), pages 1471-1474, July.
    7. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    8. Duyen Nhat Lam Tran & Tien Dinh Nguyen & Thuy Thu Pham & Roberto F. Rañola & Thinh An Nguyen, 2021. "Improving Irrigation Water Use Efficiency of Robusta Coffee ( Coffea canephora ) Production in Lam Dong Province, Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    9. Parker, Dawn Cassandra, 2007. "Revealing "space" in spatial externalities: Edge-effect externalities and spatial incentives," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 84-99, July.
    10. Kundu, Raj Kumar & Chattopadhyay, Apurba Kumar, 2020. "Financial Performance of Major and Medium Irrigation Projects in India - Some Issues," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), April.
    11. Palomo-Hierro, Sara & Loch, Adam & Pérez-Blanco, C. Dionisio, 2022. "Improving water markets in Spain: Lesson-drawing from the Murray-Darling Basin in Australia," Agricultural Water Management, Elsevier, vol. 259(C).
    12. Juan José, Perfetti & Leibovich,, José & Delgado, Martha & López, Enrique, 2024. "La tierra para uso agropecuario en Colombia: equidad y productividad," Cuadernos de Fedesarrollo 21192, Fedesarrollo.
    13. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," Book Chapters,, International Water Management Institute.
    14. Donghui Song & Fengbo Chen & Xi Ouyang, 2024. "The Impact of Changes in Rural Family Structure on Agricultural Productivity and Efficiency: Evidence from Rice Farmers in China," Sustainability, MDPI, vol. 16(10), pages 1-20, May.
    15. Pranab Bardhan & Isha Ray, 2008. "Methodological Approaches in Economics and Anthropology," Chapters, in: John B. Davis & Wilfred Dolfsma (ed.), The Elgar Companion to Social Economics, chapter 24, Edward Elgar Publishing.
    16. Nguyen-Anh, Tuan & Hoang-Duc, Chinh & Tiet, Tuyen & Nguyen-Van, Phu & To-The, Nguyen, 2022. "Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa," Food Policy, Elsevier, vol. 113(C).
    17. Lang, Dengxiao & Ertsen, Maurits W., 2023. "Modelling farmland dynamics in response to farmer decisions using an advanced irrigation-related agent-based model," Ecological Modelling, Elsevier, vol. 486(C).
    18. Perfetti, Juan José & Leibovich,, José & Delgado, Martha & López, Enrique, 2024. "La tierra para uso agropecuario en Colombia: equidad y productividad," Informes de Investigación 21032, Fedesarrollo.
    19. Wirat Krasachat, 2023. "The Effect of Good Agricultural Practices on the Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 15(1), pages 1-25, January.
    20. Ryo Kawasaki & Takashi Sato & Shigeo Muto, 2012. "Farsighted Stable Sets of Tariff Games," TERG Discussion Papers 281, Graduate School of Economics and Management, Tohoku University.

    More about this item

    Keywords

    Drought; Nash equilibrium; Static game; Water theft; Willingness to pay;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agiwat:v:255:y:2021:i:c:s0378377421003097. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agwat .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.