@article{Athanassoglou:102502,
      recid = {102502},
      author = {Athanassoglou, Stergios and Sheriff, Glenn and Siegfried,  Tobias and Tim Huh, Woonghee},
      title = {Optimal Mechanisms for Heterogeneous Multi-cell Aquifers},
      address = {2011-03},
      number = {838-2016-55727},
      series = {SD},
      pages = {43},
      year = {2011},
      abstract = {Standard economic models of groundwater management impose  restrictive assumptions regarding perfect transmissivity  (i.e., the aquifer behaves as a bathtub), no external  effects of groundwater stocks, observability of individual  extraction rates, and/or homogenous agents. In this  article, we derive regulatory mechanisms for inducing the  socially optimal extraction path in Markov perfect  equilibrium for aquifers in which these assumptions do not  hold. In spite of the complexity of the underlying system,  we identify an interesting case in which a simple linear  mechanism achieves the social optimum. To illustrate  potential problems that can arise by erroneously imposing  simplifying assumptions, we conduct a simulation based on  data from the Indian state of Andhra Pradesh.},
      url = {http://ageconsearch.umn.edu/record/102502},
      doi = {https://doi.org/10.22004/ag.econ.102502},
}