Equity–efficiency optimizing resource allocation: The role of time preferences in a repeated irrigation game

We study repeated water allocation decisions among small scale irrigation users in Tanzania. In a treatment replicating water scarcity conditions, convexities in production make that substantial efficiency gains can be obtained by deviating from equal sharing, leading to an equity–efficiency trade-o...

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Detalles Bibliográficos
Autores principales: Van Campenhout, Bjorn, D'Exelle, Ben, Lecoutere, Els
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/151435
Descripción
Sumario:We study repeated water allocation decisions among small scale irrigation users in Tanzania. In a treatment replicating water scarcity conditions, convexities in production make that substantial efficiency gains can be obtained by deviating from equal sharing, leading to an equity–efficiency trade-off. In a repeated game setting, it becomes possible to reconcile efficiency with equity by rotating the person who receives the largest share, but such a strategy requires a longer run perspective. Correlating experimental data from an irrigation game with individual time preference data, we find that less patient irrigators are less likely to use a rotation strategy.