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Groundwater Usage and Strategic Complements: Part II (Revealed Preferences)

Author

Listed:
  • Caleb M. Koch

    (Computational Social Science, Department of Humanities, Social and Political Sciences, ETH Zürich, 8050 Zürich, Switzerland)

  • Heinrich H. Nax

    (Behavioral Game Theory, Department of Humanities, Social and Political Sciences, ETH Zürich, 8050 Zürich, Switzerland
    Institute of Sociology, University of Zürich, 8050 Zürich, Switzerland)

Abstract

We investigate the strategic nature of farmers’ groundwater usage with a rich dataset from the American Midwest. We propose a new revealed preference test for the groundwater interaction as a dynamic game. We reject a view of groundwater usage decisions as strategic substitutes in favor of strategic complements as a better description.

Suggested Citation

  • Caleb M. Koch & Heinrich H. Nax, 2022. "Groundwater Usage and Strategic Complements: Part II (Revealed Preferences)," Games, MDPI, vol. 13(5), pages 1-19, October.
    • Handle: RePEc:gam:jgames:v:13:y:2022:i:5:p:68-:d:943900
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    References listed on IDEAS

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    Cited by:

    1. Caleb M. Koch & Heinrich H. Nax, 2022. "Groundwater Usage and Strategic Complements: Part I (Instrumental Variables)," Games, MDPI, vol. 13(5), pages 1-19, October.
    2. Banzhaf, H. Spencer & Liu, Yaqin, "undated". "Non-Parametric Tests of Output- and Cost-Sharing Games," CEnREP Working Papers 347604, North Carolina State University, Department of Agricultural and Resource Economics.

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