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Designing and Implementing a Field Lab Experiment for a Groundwater Rights Auction in the Qazvin Aquifer

Jafar Salehi, Hamid Reza | 2025

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 58614 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Vesal, Mohammad
  7. Abstract:
  8. The water market in the agricultural sector is one of the most efficient institutions for optimal water allocation. However, it is one of Iran's last solutions to address water scarcity. Studies on developing formal water markets in the agricultural sector began in 2014. In 2023, the first official water exchange between farmers took place in the Qazvin aquifer. However, the mechanism being used is based on negotiation, which is far from the optimal solution. The market is thin, participation is low, and the matching process is time-consuming and costly. In this research, after identifying the characteristics of Qazvin's agricultural sector, we aim to design and conduct a water rights auction to improve the existing market. The main question of this research is which of the candidate auctions, closer to the conditions of the Qazvin water market, performs better in revenue and efficiency? The secondary question of the research addresses the learning effects on individuals’ bidding behavior. The proposed auctions in this research are Call-auction and modified versions of the All-in auction, adapted to the characteristics of the Qazvin water market. These auctions will be conducted experimentally among farmers located in Qazvin, and their results will be analyzed to compare the efficiency and revenue of the candidate auctions
  9. Keywords:
  10. Agriculture ; Government Policy ; Experimental Design ; Qazvin Aquifer ; Groundwater Rights Auction ; Water Market ; Agricultural water

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