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Environmental determinants of cost sharing an application to irrigation

Author

Listed:
  • David Aadland
  • Van Kolpin

Abstract

Multiple-cost sharing rules often coexist in seemingly identical environments. We use shared irrigation costs as a context for examining the extent to which the structural environment explains the selection of a cost sharing rule. We find that environmental factors that?induce greater dependence on the cooperation of others, influence majority interests, create difficulties for interpersonal utility comparisons, or impact notions of “fairness”?all have impressive explanatory power. These results present the first formal empirical analysis of the manner in which structural features influence the actual ost-sharing choices of economic agents.

Suggested Citation

  • David Aadland & Van Kolpin, 2001. "Environmental determinants of cost sharing an application to irrigation," Working Papers 2001-08, Utah State University, Department of Economics.
    • Handle: RePEc:usu:wpaper:2001-08
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    File URL: https://repec.bus.usu.edu/RePEc/usu/pdf/ERI2001-08.pdf
    File Function: First version, 2001
    Download Restriction: no
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    More about this item

    Keywords

    cooperative games; cost allocation; equity; probit model;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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