A stochastic multiple players multi-issues bargaining model for the Piave river basin
AbstractThe objective of this paper is to investigate the usefulness of non-cooperative bargaining theory for the analysis of negotiations on water allocation and management. We explore the impacts of different economic incentives, a stochastic environment and varying individual preferences on players’ strategies and equilibrium outcomes through numerical simulations of a multilateral, multiple issues, non-cooperative bargaining model of water allocation in the Piave River Basin, in the North East of Italy. Players negotiate in an alternating-offer manner over the sharing of water resources (quantity and quality). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability is not known with certainty to negotiating players. We construct the players’ objective function with their direct input. We then test the applicability of our multiple players, multi-issues, stochastic framework to a specific water allocation problem and conduct comparative static analyses to assess sources of bargaining power. Finally, we explore the implications of different attitudes and beliefs over water availability.
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Bibliographic InfoPaper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2007_28.
Date of creation: 2007
Date of revision:
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More information through EDIRC
Bargaining; non-cooperative game theory; simulation models; uncertainty;
Other versions of this item:
- 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.
- Alessandra Sgobbi & Carlo Carraro, 2007. "A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin," CESifo Working Paper Series 2178, CESifo Group Munich.
- Alessandra Sgobbi & Carlo Carraro, 2007. "A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin," Working Papers 2007.101, Fondazione Eni Enrico Mattei.
- Carraro, Carlo & Sgobbi, Alessandra, 2007. "A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin," CEPR Discussion Papers 6585, C.E.P.R. Discussion Papers.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
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