CAPRi Working Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Working Papers will eventually be published in some other form, and that their content may also be revised. An earlier draft of this paper was presented at the Workshop on Property Rights, Collective Action and Technology Adoption, Aleppo, Syria, Nov 22-25, 1997. This is a revised draft for This paper develops and applies a new approach for analyzing the spatial aspects of individual adoption of a technology that produces a mixed public-private good. The technology is an animal insecticide treatment called a “pouron ” that individual households buy and apply to their animals. Private benefits accrue to households whose animals are treated, while the public benefits accrue to all those who own animals within an area of effective suppression. A model of household demand for pourons is presented. As for a private good, household demand for the variable input depends upon output price, input cost, and household characteristics. Input costs for pouron treatments include both the market price of the pourons and the transaction costs that the household must incur to obtain the treatments. Demand als
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