ABSTRACT
Exploitation of aquifers has traditionally been regarded as a typical example of management of a common property resource where collective ownership induces inefficient use due to strategic interactions between users (Provencher and Burt, 1994; Roemer, 1989). Indeed, an increasing number of regions have unsustainable groundwater balance due to overdraft (Shah et al, 2000). This chapter takes groundwater extraction rights owned and administered collectively by groups of farmers 1 and considers the potential impact of changes in groups’ operational rules on the resource use.
