Land division: A lab-in-the-field bargaining experiment

We design a framed bargaining experiment to explore how farmers allocate inherited land. In the experiment, two players with heterogeneous productivity inherit a land plot yielding a risky production, and some tokens to bargain over a land allocation. We conduct this experiment in Colombia with 256 participants from rural municipalities and 120 undergraduate students. Although […]

Preferences, uncertainty, and biases in land division: A bargaining experiment in the field

Divisions of rural land in developing countries reduce the possibilities of farmers to profit from agricultural returns to scale. We design and conduct a framed bargaining experiment to study whether land overvaluation (due to affective reasons) and uncertainty in land values are drivers for land division. In our bargaining game, two players with different agricultural […]

Environmental valuation using bargaining games: an application to water

We characterize a general bargaining game useful for environmental valuation purposes. In this game, a jointly endowed asset is divisible into smaller units of two types:those with and without an associated costly attribute. Bargaining parties can use monetary transfers to their counterpart in exchange for accruing more units of the jointlyendowed asset. We show that […]