Laukkanen, Marita and Koundouri, Phoebe (2006): Competition versus coopertion in groundwater extraction: A stochastic framework with heteregoneous agents. Published in: Water Management in Arid and Semi-Arid Regions: Interdisciplinary Perspectives (2006)
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We analyze a game with N farmers that extract groundwater from a common aquifer of small storage capacity. Our aim is to compare the socially optimal, myopic and feedback extraction strategies, the latter arising from competitive interaction between extracting agents. Our extension to existing literature is that we consider heterogeneous farmers, facing uncertainty deriving from stochastic rainfall. The farmers differ in terms of their choice of irrigation technology, which results in different farmer-speci�c impact on the aquifer recharge rate. We illustrate the implications of the di¤erent strategies on extraction rates, groundwater table levels and welfare attained, via simulations based on data from the Kiti aquifer in Cyprus.
|Item Type:||MPRA Paper|
|Original Title:||Competition versus coopertion in groundwater extraction: A stochastic framework with heteregoneous agents|
|Keywords:||common property resources; groundwater management; dif- ference games; strategic externality|
|Subjects:||D - Microeconomics > D4 - Market Structure, Pricing, and Design
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q25 - Water
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation
|Depositing User:||Phoebe Koundouri|
|Date Deposited:||15. Oct 2012 14:09|
|Last Modified:||21. Aug 2015 21:00|
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