Self-governance of natural resources has started to gain increasing attention as an alternative to command-and-control and market-based tools. However, a fundamental question remains: is self-governance economically beneficial, allowing it to serve as an alternative management tool? This paper...

This paper explains the puzzling fact that in organizing the management of surface water, village leaders have provided incentives to canal managers in some areas, but not in all. Our study indicates that the optimal contractual choice depends on the relative abilities of the leader and the...