Publication:
Mixture and distribution of different water qualities: an experiment on vertical structure in a complex market

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorGarcía-Gallego, Aurora
dc.contributor.authorGeorgantzís, Nikolaos
dc.contributor.authorFatás-Jubería, Enrique
dc.contributor.authorKujal, Praveen
dc.contributor.authorNeugebauer, Tibor
dc.contributor.otherLaboratory for Research in Experimental Economics
dc.contributor.otherUniversity of Valencia
dc.contributor.otherUniversity Jaume I of Castellón
dc.date.accessioned2012-07-24T14:16:19Z
dc.date.available2012-07-24T14:16:19Z
dc.date.issued2000
dc.description.abstractWe set up a model of water management, which is inspired by the possibility of mixing water of different qualities. Water is supplied to two types of consumers with different preferences for water quality and quantity. A distributional knot may exist which optimally distributes the supplied water in the downstream market. Different scenarios compare experimentally the advantages of a centralized versus a decentralized resource management. We conducted experiments with 14 markets in three different settings, labelled as “upstream monopoly”, “upstream duopoly” and “duopoly-monopsony”. We find that a two-product monopoly performs better than the duopoly regarding social welfare and volatility with respect to prices and production. Especially, the centralization of information enhances learning in the market considered. An interesting observation is that monopolistic subjects post much lower price offers at the outset of the experiment than duopolists do. However, in the course of the experiment production is lower and prices are higher in the monopolistic structure. In the duopoly-monopsony case, monopsonistic subjects failed to exercise market power and market prices did not reflect correctly the differences in qualities. Nevertheless, increased upstream competition and downstream market power helped to mitigate the waste of resources in the economy.
dc.format.mimetypeapplication/pdf
dc.identifier.doi10.2139/ssrn.258917
dc.identifier.urihttps://hdl.handle.net/10016/14980
dc.language.isoeng
dc.relation.ispartofseriesLINEEX working paper
dc.relation.ispartofseries12/00
dc.relation.publisherversionhttp://dx.doi.org/10.2139/ssrn.258917
dc.rights.accessRightsopen access
dc.subject.ecienciaEconomía
dc.subject.jelC9
dc.subject.jelD4
dc.subject.jelL1
dc.subject.jelQ2
dc.subject.otherwater quality
dc.subject.otherexperimental market
dc.subject.othercomplex system
dc.subject.otherWater management
dc.subject.otherExperimental economics
dc.subject.otherVertical structure
dc.titleMixture and distribution of different water qualities: an experiment on vertical structure in a complex market
dc.typeworking paper*
dc.type.hasVersionSMUR*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
mixture_kujal_LINEEX_2012.pdf
Size:
259.56 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DE - Otros documentos
Economists Online