Paper replaced with revised version 06/03/08

Replaced with revised version of paper 07/19/11.

In the face of growing management problems and conflicts over increasing demands and dwindling or increasingly variable supplies of surface and groundwater, the need for revising the conventional water resource allocation methods has been increasingly felt among natural resource managers and...

In the face of growing management problems and conflicts over increasing demands and dwindling or increasingly variable supplies of surface and groundwater, the need for revising the conventional water resource allocation methods has been increasingly felt among natural resource managers and...

While water markets have been shown to be beneficial to users, the transfers made through sales can have serious third-party impacts, as has been addressed in the water resources literature. Potential asymmetries arising from the hydrological characteristics of the groundwater basin could...

This research uses laboratory experiments to test alternative water market institutions designed to protect third-party interests. The institutions tested include taxing mechanisms that raise revenue to compensate affected third-parties, and a free market in which third-parties actively...