Environmental determinants of cost sharing an application to irrigation

David Aadland () and Van Kolpin

No 2001-08, Working Papers from Utah State University, Department of Economics

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.

Keywords: cooperative games; cost allocation; equity; probit model (search for similar items in EconPapers)
JEL-codes: C71 D63 C25 (search for similar items in EconPapers)
Date: 2001-04

Downloads: (external link)
http://www.econ.usu.edu/RePEc/usu/pdf/ERI2001-08.pdf First version, 2001 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Working Papers from Utah State University, Department of Economics
Series data maintained by DeeVon Bailey ().