We design a laboratory experiment to investigate bilateral link formation in a setting where payoffs are pair-specific. Our link formation rule is decentralized and players can make link offers and counter-offers, as in a Beckerian marriage market. The game is designed in such a way that a...

Centralized, top-down management of water resources through regulations has created unnecessary economic burdens upon users. More flexible decentralized controls through the use of economic incentives have gained acceptance over the past decade. The theme of this book is the increasing efforts...