Erratum to “Environmental determinants of cost sharing”

D Aadland, V Kolpin - Journal of Economic Behavior & Organization, 2004 - Elsevier
Journal of Economic Behavior & Organization, 2004Elsevier
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 cost-sharing rule selection. We find that environmental factors affecting irrigation
costs and benefits, as well as those determining irrigator distribution along the ditch, have
impressive explanatory power. These results present some of the first formal empirical
analysis of the manner in which structural features influence the actual cost-sharing choices …
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 cost-sharing rule selection. We find that environmental factors affecting irrigation costs and benefits, as well as those determining irrigator distribution along the ditch, have impressive explanatory power. These results present some of the first formal empirical analysis of the manner in which structural features influence the actual cost-sharing choices of economic agents. Moreover, our results also suggest that previous axiomatic studies are reflective of real-world cost-sharing behavior.
Elsevier
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