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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: C25 C71 D63 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2001-04
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https://repec.bus.usu.edu/RePEc/usu/pdf/ERI2001-08.pdf First version, 2001 (application/pdf)

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