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The Sequential Equal Surplus Division for Sharing International Rivers with Bifurcations

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  • Sylvain Béal

    () (CRESE, Université de Franche-comté)

  • Amandine Ghintran

    () (EQUIPPE, Université de Lille 3)

  • Eric Rémila

    () (Gate Lyon Saint-Etienne, Université de Saint-etienne)

  • Philippe Solal

    () (Gate Lyon Saint-Etienne, Université de Saint-etienne)

Abstract

We consider the problem of sharing water from a river among the group of countries located along it. The benefit of each country depends on the amount of water it consumes. An allocation of the water is efficient when it maximizes the total benefits of the countries. The problem of finding a fair welfare distribution can be modeled as a cooperative game. We introduce a new allocation rule, called the sequential equal surplus division, for sharing the total welfare resulting form the cooperation of countries along a river with bifurcations. This rule obeys the so-called Territorial Integration of all Basin States doctrine, which emphasizes compromise and fairness among countries. We provide two axiomatic characterizations of this rule.

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File URL: http://crese.univ-fcomte.fr/WP-2012-02.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by CRESE in its series Working Papers with number 2012-02.

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Length: 24 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:crb:wpaper:2012-02

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Keywords: River TU-game; Sequential Equal Surplus Division; Water allocation; Standard solution; Consistency; Fairness; Amalgamation;

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References

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  1. Lehrer, E, 1988. "An Axiomatization of the Banzhaf Value," International Journal of Game Theory, Springer, vol. 17(2), pages 89-99.
  2. Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2007. "The consensus value: A new solution concept for cooperative games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-195202, Tilburg University.
  3. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
  4. Herings, P.J.J. & Laan, G. van der & Talman, A.J.J., 2008. "The average tree solution for cycle-free graph games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377604, Tilburg University.
  5. Thomson, W., 1998. "Consistency and its Converse: an Introduction," RCER Working Papers 448, University of Rochester - Center for Economic Research (RCER).
  6. van den Brink, René & van der Laan, Gerard & Moes, Nigel, 2012. "Fair agreements for sharing international rivers with multiple springs and externalities," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 388-403.
  7. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2010. "Rooted-tree solutions for tree games," European Journal of Operational Research, Elsevier, vol. 203(2), pages 404-408, June.
  8. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2012. "Weighted component fairness for forest games," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 144-151.
  9. Erik Ansink & Hans-Peter Weikard, 2009. "Sequential Sharing Rules for River Sharing Problems," Working Papers 2009.114, Fondazione Eni Enrico Mattei.
  10. Aadland, David & Kolpin, Van, 1998. "Shared irrigation costs: An empirical and axiomatic analysis," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 203-218, March.
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