Cooperation makes it happen? A groundwater economic artefactual experiment

Rodrigo Salcedo ()
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Rodrigo Salcedo: Ph.D. Candidate, The Pennsylvania State University

No 201463, Working Papers from Latin American and Caribbean Environmental Economics Program

Abstract: We conduct economic framed experiments in order to analyze the effect of access to efficient technology and group arrangements on groundwater management decisions. A groundwater game was conducted with 256 farmers selected from different regions of the state of Aguascalientes, Mexico, and with 200 undergraduate students. Significant differences were found on the effects of the treatments between the two populations: group arrangements show an important positive effect in the laboratory and a lesser effect on the field, whereas adoption of efficient technology shows significantly positive effects on the field but not on the laboratory. This last result suggests the presence of strategic behavior in technology adoption during the laboratory experiments, whose participants do not possess background information about irrigation technologies. Key Words: Common pool resources; groundwater management; artefactual experiment; economic laboratory experiment; experimental economics; strategic behavior.

Pages: 54 pages
Date: 2014, Revised 2014
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