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Reciprocal insurance among Kenyan pastoralists

Author(s): Dixit, Avinash K.; Levin, Simon A.; Rubenstein, Daniel I.

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Abstract: In large areas of low and locally variable rainfall in East Africa, pastoralism is the only viable activity, and cattle are at risk of reduced milk output and even death in dry periods. The herders were nomadic, but following the Kenyan government’s scheme of giving titles to group ranches, they are evolving reciprocity arrangements where a group suffering a dry period can send some of its cattle to graze on lands of another group that has better weather. We model such institutions using a repeated game framework. As these contracts are informal, we characterize schemes that are optimal subject to a self-enforcement or dynamic incentive compatibility condition. Where the actual arrangements differ from the predicted optima, we discuss possible reasons for the discrepancy and suggest avenues for further research.
Publication Date: May-2013
Electronic Publication Date: 25-Aug-2012
Citation: Dixit, Avinash K, Levin, Simon A, Rubenstein, Daniel I. (2013). Reciprocal insurance among Kenyan pastoralists. Theoretical Ecology, 6 (2), 173 - 187. doi:10.1007/s12080-012-0169-x
DOI: doi:10.1007/s12080-012-0169-x
ISSN: 1874-1738
EISSN: 1874-1746
Pages: 173 - 187
Type of Material: Journal Article
Journal/Proceeding Title: Theoretical Ecology
Version: Author's manuscript

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