Institutions in transition : using experimental economics to better align market outcomes with novel groundwater recharge policy initiatives

1 Background As a general rule market-based instruments (MBI) use markets and market like mechanisms to influence the choices made by land managers. In contrast to policy approaches using explicit directives, they are designed to encourage innovative behaviour through the price signals of market exchange. The potential advantage of MBI approaches is that they can achieve environmental goals at a less and hence more affordable cost to the community.