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Land division: A lab-in-the-field bargaining experiment

Margarita Gafaro and César Mantilla

Journal of Development Economics, 2020, vol. 146, issue C

Abstract: We design a framed bargaining experiment to explore how farmers allocate inherited land. In the experiment, two players with heterogeneous productivity inherit a land plot yielding a risky production, and some tokens to bargain over a land allocation. We conduct this experiment in Colombia with 256 participants from rural municipalities and 120 undergraduate students. Although the efficient, the non-cooperative, and the cooperative solutions of this game predict that the most productive player accrues most of the land, we find that 75% of the bargaining interactions yield egalitarian but inefficient land divisions. We implemented a treatment variation in which a costly disagreement is the only outcome leading to land equality. The single disagreement observed in this treatment weakens the support for preferences for egalitarian outcomes as the driver of inefficient allocations. We discuss alternative explanations based on the salience of equality heuristics, over-valuation of land, and sequential cooperative bargaining.

Keywords: Land division; Non-cooperative bargaining; Cooperative bargaining; Efficiency (search for similar items in EconPapers)
JEL-codes: C78 C90 O13 Q15 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:146:y:2020:i:c:s0304387820301000

DOI: 10.1016/j.jdeveco.2020.102525

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