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Thanks but No Thanks: A New Policy to Reduce Land Conflict

Martin Dufwenberg, Gunnar Köhlin, Peter Martinsson and Haileselassie Medhin

No 519, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University

Abstract: Land conflicts in developing countries are costly. An important policy goal is to create respect for borders. This often involves mandatory, expensive interventions. We propose a new policy design, which in theory promotes neighborly relations at low cost. A salient feature is the option to by-pass regulation through consensus. The key idea combines the insight that social preferences transform social dilemmas into coordination problems with the logic of forward induction. As a first, low-cost pass at empirical evaluation, we conduct an experiment among farmers in the Ethiopian highlands, a region exhibiting features typical of countries where borders are often disputed. Our results suggest that a low-cost land delimitation based on neighborly recognition of borders could deliver a desired low-conflict situation if accompanied by an optional higher cost demarcation process. Keywords: Conflict, land-conflict game, social preferences, forward induction, Ethiopia, experiment, land reform JEL codes: C78; C93; D63; Q15

Date: 2014
New Economics Papers: this item is included in nep-afr, nep-agr and nep-exp
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Citations: View citations in EconPapers (3)

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Journal Article: Thanks but no thanks: A new policy to reduce land conflict (2016) Downloads
Working Paper: Thanks but No Thanks: A New Policy to Reduce Land Conflict (2014) Downloads
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