Behavior in a Spatially Explicit Groundwater Resource: Evidence from the Lab

This research uses laboratory experiments to examine how hydrogeologic properties of groundwater models influence decision making. The results reveal that pumping rates are highest when the underlying model is such that the future costs of groundwater use are broadcast evenly to all users, as a majority of participants behave myopically. There is less myopic behavior when the groundwater dynamics are governed by spatially explicit models, where the private cost of groundwater use is high relative to external costs. These results suggest that models used to simulate common-pool resource dynamics play an important role in determining both economic predictions and behavioral outcomes. Copyright 2012, Oxford University Press.