Abstract
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.
Original language | English |
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Pages (from-to) | 234-253 |
Number of pages | 20 |
Journal | Oxford Bulletin of Economics and Statistics |
Volume | 77 |
Issue number | 2 |
DOIs | |
Publication status | Published - Apr 2015 |
Externally published | Yes |