Do buyers have bargaining power? Evidence from informal groundwater contracts.

ABSTRACT: In developing countries, the emergence of informal groundwater markets is accidental rather than planned due to the water scarcity and supply-side constraints. It is less often that water markets are assessed for agents bargaining power and equity impacts. In this paper, I examine the relative bargaining power of sellers and buyers in informal groundwater markets in India. To understand the process of bargaining, a framed-field experiment is conducted with actual buyers and sellers in groundwater contracts. In the experiment, sellers and buyers make a series of choices between output-shared and fixed-price contracts under varied risk conditions, first individually and then jointly. I define bargaining power as the relative ability of the agent to influence the joint decision for their indi

SUBMITTER: Yashodha 

PROVIDER: S-EPMC7527252 | biostudies-literature | 2020

REPOSITORIES: biostudies-literature