Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

8

Publisher

Utah State University Department of Economics

Publication Date

2001

First Page

1

Last Page

30

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 "faimess"-all have impressive explanatory power. These results present the first formal empirical analysis of the manner in which structural features influence the actual cost-sharing choices of economic agents.


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