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Negotiating on water: insights from non-cooperative bargaining theory

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  • CARRARO, CARLO
  • MARCHIORI, CARMEN
  • SGOBBI, ALESSANDRA

Abstract

The purpose of this paper is to review the applications of non-cooperative bargaining theory to water management problems. The interest in this subject stems from two considerations: (i) water resources continue to be mismanaged, despite their recognized importance for sustainable development, in particular in developing countries; (ii) negotiated decision making has the potential to improve water management, yet there is still little formal understanding of the forces driving bargaining processes, and applications of formal negotiation theory to water issues are also lacking. This paper surveys the existing non-cooperative bargaining models applied to water management problems, with the purpose of preliminarily assessing whether such a formal approach in the phase of problem exploration and policy formulation can support decision makers in the real world. It is the contention of this paper that the proposed approach may offer direct and indirect support by: shortening the time needed to reach an agreement through the (theoretical) identification of an acceptability space , and helping select policies which are self-enforcing and, therefore, acceptable.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 12 (2007)
Issue (Month): 02 (April)
Pages: 329-349

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Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:329-349_00

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Cited by:
  1. Petr Fiala & Petr Šauer, 2011. "Application of Combinatorial Auctions on Allocation of Public Financial Support in the Area of Environmental Protection: Economic Laboratory Experiment," Politická ekonomie, University of Economics, Prague, vol. 2011(3), pages 379-392.
  2. Rémy Delille & Jean-Christophe Pereau, 2014. "The Seawall Bargaining Game," Games, MDPI, Open Access Journal, vol. 5(2), pages 127-139, June.
  3. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer, vol. 38(2), pages 187-210, February.
  4. Harold Houba & Erik Ansink, 2013. "Sustainable Agreements on Stochastic River Flow," Tinbergen Institute Discussion Papers 13-182/II, Tinbergen Institute.
  5. Alessandra Sgobbi & Carlo Carraro, 2007. "Modelling Negotiated Decision Making: a Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," Working Papers 2007.81, Fondazione Eni Enrico Mattei.
  6. Hurt, Wesley & Osorio, Antonio, 2014. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," MPRA Paper 56690, University Library of Munich, Germany.
  7. Hurt, Wesley & Osório, António (António Miguel), 2014. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/237596, Universitat Rovira i Virgili, Department of Economics.
  8. Sgobbi, Alessandra & Carraro, Carlo, 2011. "A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin," Strategic Behavior and the Environment, now publishers, vol. 1(2), pages 119-150, April.
  9. Erik Ansink, 2009. "Self-enforcing Agreements on Water allocation," Working Papers 2009.73, Fondazione Eni Enrico Mattei.
  10. Carmen Marchiori, 2010. "Concern for Fairness and Incentives in Water Negotiations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(4), pages 553-571, April.
  11. Sylvain Beal & Amandine Ghintran & Eric Remila & Philippe Solal, 2013. "The River Sharing Problem: A Survey," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1340016-1-1.

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