Do Security‐Differentiated Water Rights Improve the Performance of Water Markets?
通过实验室实验，比较单一安全等级与双安全等级的水权制度，发现双等级系统在交易成本较低时能提高整体利润，并改善风险分配，使参与者能根据风险偏好权衡利润波动与预期利润。
Most existing water markets combine water rights trading and water allocation trading. Offering security‐differentiated water rights can make the market more efficient and allow water users to manage the risks of supply uncertainty better. We conduct a laboratory experiment which compares two designs for water rights; one with a single security level and another with two security levels. We find that a two security level system increases overall profits when transactions costs are lower on the water rights market than on the water allocation market. It also improves risk allocation by allowing subjects to trade‐off profits variability against expected profits according to their risk type and this result is robust to the existence of transactions costs on either market.