Rationing by Intermittency
Over one billion people receive piped water on an intermittent schedule: the pipe is pressurized only a few hours or days per week. Economists have long studied non-price rationing via quantity caps and queues, but both assume the good remains continuously available. Intermittency rations a different dimension (access itself) and forces households to invest in private storage to smooth consumption across supply interruptions. This paper asks: what is the welfare cost of this form of rationing, and what prevents governments from replacing it with pricing plus redistribution?
