Experimental evidence on the relative efficiency of forward contracting and tradable entitlements in water markets

World Economic Forum, 2015, Global risks 2015 Grafton, 2011, An integrated assessment of water markets: a cross-country comparison, Rev. Environ. Econ. Policy, 5, 219, 10.1093/reep/rer002 Matthews, 2004, Fundamental questions about water rights and market reallocation, Water Resour. Res., 40, 10.1029/2003WR002836 Calatrava, 2005, Modelling water markets under uncertain water supply, Eur. Rev. Agric. Econ., 32, 119, 10.1093/eurrag/jbi006 Wittwer, 2011, Modelling drought and recovery in the southern Murray-Darling Basin, Aust. J. Agric. Resour. Econ., 55, 342, 10.1111/j.1467-8489.2011.00541.x Gaydon, 2012, Comparing water investment options for irrigation farmers using modern portfolio theory, Agric. Water Manag., 115, 1, 10.1016/j.agwat.2012.08.007 Wolak, 2000, An empirical analysis of the impact of hedge contracts on bidding behavior in a competitive electricity market, Int. Econ. J., 14, 1, 10.1080/10168730000000017 Noussair, 2006, Futures markets and bubble formation in experimental asset markets, Pac. Econ. Rev., 11, 167, 10.1111/j.1468-0106.2006.00308.x Harrison, 2010, Individual discount rates and smoking: evidence from a field experiment in Denmark, J. Health Econ., 29, 708, 10.1016/j.jhealeco.2010.06.006 Cristi, 2007 Hansen, 2008, Valuing risk: options in California water markets, Am. J. Agric. Econ., 90, 1336, 10.1111/j.1467-8276.2008.01227.x Hadjigeorgalis, 2009, A place for water markets: performance and challenges, Appl. Econ. Perspect. Policy, 31, 50 Leroux, 2016, Hedging supply risks: an optimal water portfolio, Am. J. Agric. Econ., 98, 276, 10.1093/ajae/aav014 Suter, 2013, Thin and lumpy: an experimental investigation of water quality trading, Water Resour. Econ., 1, 36, 10.1016/j.wre.2013.03.004 Allaz, 1993, Cournot competition, forward markets and efficiency, J. Econ. theory, 59, 1, 10.1006/jeth.1993.1001 Godby, 1997, Emissions trading with shares and coupons when control over discharges is uncertain, J. Environ. Econ. Manag., 32, 359, 10.1006/jeem.1997.0977 Muller, 1994, Emission trading with shares and coupons: a laboratory experiment, Energy J., 185 Wolak, 2003, Diagnosing the California electricity crisis, Electr. J., 16, 11, 10.1016/S1040-6190(03)00099-X Maeda, 2004, Impact of banking and forward contracts on tradable permit markets, Environ. Econ. Policy Stud., 6, 81, 10.1007/BF03353932 Brandts, 2008, Competition with forward contracts: a laboratory analysis motivated by electricity market design, Econ. J., 118, 192, 10.1111/j.1468-0297.2007.02109.x Montgomery, 1972, Markets in licenses and efficient pollution control programs, J. Econ. Theory, 5, 395, 10.1016/0022-0531(72)90049-X Le Coq, 2006, Do forward markets enhance competition?: Experimental evidence, J. Econ. Behav. Organ., 61, 415, 10.1016/j.jebo.2004.11.012 Liski, 2006, Forward trading and collusion in oligopoly, J. Econ. Theory, 131, 212, 10.1016/j.jet.2005.05.002 Murphy, 2010, On the impact of forward markets on investments in oligopolistic markets with reference to electricity, Oper. Res., 58, 515, 10.1287/opre.1090.0753 Suter, 2012, Behavior in a spatially explicit groundwater resource: evidence from the lab, Am. J. Agric. Econ., 94, 1094, 10.1093/ajae/aas058 Connor, 2008, Designing, testing and implementing a trial dryland salinity credit trade scheme, Ecol. Econ., 67, 574, 10.1016/j.ecolecon.2008.01.020 Tisdell, 2010, Impact of environmental traders on water markets: an experimental analysis, Water Resour. Res., 46, 10.1029/2009WR007930 Tisdell, 2011, Water markets in Australia: an experimental analysis of alternative market mechanisms, Aust. J. Agric. Resour. Econ., 55, 500, 10.1111/j.1467-8489.2011.00550.x Lefebvre, 2012, Do security-differentiated water rights improve the performance of water markets?, Am. J. Agric. Econ., 94, 1113, 10.1093/ajae/aas060 Friedman, 1984, On the efficiency of experimental double auction markets, Am. Econ. Rev., 74, 60 Vernon, 1962, An experimental study of competitive market behavior, J. polit. Econ., 70, 111, 10.1086/258609 Wilson, 1985, Incentive efficiency of double auctions, Econometrica, 53, 1101, 10.2307/1911013 Fischbacher, 2007, z-Tree: zurich toolbox for ready-made economic experiments, Exp. Econ., 10, 171, 10.1007/s10683-006-9159-4 Greiner, 2015, Subject pool recruitment procedures: organizing experiments with ORSEE, J. Econ. Sci. Assoc., 1, 114, 10.1007/s40881-015-0004-4 Muller, 2002, Can double auctions control monopoly and monopsony power in emissions trading markets?, J. Environ. Econ. Manag., 44, 70, 10.1006/jeem.2001.1195 Waterfind, 2014 Carbone, 2006, Understanding intertemporal choices, Appl. Econ., 38, 889, 10.1080/00036840500399313 Carbone, 2004, The effect of unemployment on consumption: an experimental analysis, Econ. J., 114, 660, 10.1111/j.1468-0297.2004.00236.x Brown, 1988, Risk aversion, uncertain information, and market efficiency, J. Financ. Econ., 22, 355, 10.1016/0304-405X(88)90075-X Levitt, 2007, What do laboratory experiments measuring social preferences reveal about the real world, J. Econ. Perspect., 153, 10.1257/jep.21.2.153 Newberry, 1981 Suter, 2014, Towards an understanding of the performance of ambient tax mechanisms in the field: Evidence from dairy farmers, Am. J. Agric. Econ., 96, 92, 10.1093/ajae/aat066