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Groundwater Usage and Strategic Complements: Part I (Instrumental Variables)


Koch, Caleb M; Nax, Heinrich H (2022). Groundwater Usage and Strategic Complements: Part I (Instrumental Variables). Games, 13(5):67.

Abstract

We test whether the decisions in a common-pool resource game are better modeled game-theoretically as strategic substitutes or complements using an individual-level dataset of groundwater usage that accounts for 3% of US irrigated agriculture. Based on a regression framework with instrumental variables, we find support for strategic complements, suggesting that reciprocity– and/or race-to-depletion–like dynamics are key to understanding groundwater usage.
Keywords:
common-pool resources; US agriculture; groundwater; dynamic game theory; panel data; identification

Abstract

We test whether the decisions in a common-pool resource game are better modeled game-theoretically as strategic substitutes or complements using an individual-level dataset of groundwater usage that accounts for 3% of US irrigated agriculture. Based on a regression framework with instrumental variables, we find support for strategic complements, suggesting that reciprocity– and/or race-to-depletion–like dynamics are key to understanding groundwater usage.
Keywords:
common-pool resources; US agriculture; groundwater; dynamic game theory; panel data; identification

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:06 Faculty of Arts > Institute of Sociology
Dewey Decimal Classification:150 Psychology
Scopus Subject Areas:Physical Sciences > Statistics and Probability
Social Sciences & Humanities > Statistics, Probability and Uncertainty
Physical Sciences > Applied Mathematics
Uncontrolled Keywords:Applied Mathematics, Statistics, Probability and Uncertainty, Statistics and Probability
Language:English
Date:15 October 2022
Deposited On:16 Dec 2022 07:55
Last Modified:28 Jun 2024 01:36
Publisher:MDPI Publishing
ISSN:2073-4336
OA Status:Gold
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.3390/g13050067
  • Content: Published Version
  • Language: English
  • Licence: Creative Commons: Attribution 4.0 International (CC BY 4.0)