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Applications of negotiation theory to water issues

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  • Carraro, Carlo
  • Marchiori, Carmen
  • Sgobbi, Alessandra

Abstract

The authors review the applications of noncooperative bargaining theory to waterrelated issues-which fall in the category of formal models of negotiation. They aim to identify the conditions under which agreements are likely to emerge and their characteristics, to support policymakers in devising the"rules of the game"that could help obtain a desired result. Despite the fact that allocation of natural resources, especially trans-boundary allocation, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, the authors first discuss the noncooperative bargaining models applied to water allocation problems found in the literature. Key findings include the important role noncooperative negotiations can play in cases where binding agreements cannot be signed; the value added of politically and socially acceptable compromises; and the need for a negotiated model that considers incomplete information over the negotiated resource.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3641.

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Date of creation: 01 Jun 2005
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Handle: RePEc:wbk:wbrwps:3641

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Keywords: Water Supply and Sanitation Governance and Institutions; Town Water Supply and Sanitation; Water and Industry; Environmental Economics&Policies; Water Conservation;

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Citations

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Cited by:
  1. Janmaat, John, 2008. "Playing monopoly in the creek: Imperfect competition, development, and in-stream flows," Resource and Energy Economics, Elsevier, vol. 30(3), pages 455-473, August.
  2. Christoph Jeßberger, 2011. "Multilateral Environmental Agreements up to 2050: Are They Sustainable Enough?," Ifo Working Paper Series Ifo Working Paper No. 98, Ifo Institute for Economic Research at the University of Munich.
  3. Harold Houba, 2008. "Computing Alternating Offers And Water Prices In Bilateral River Basin Management," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 257-278.
  4. Bhaduri, Anik & Perez, Nicostrato D. & Liebe, Jens, 2008. "Scope and Sustainability of Cooperation in Transboundary Water Sharing of the Volta River," Discussion Papers 43324, University of Bonn, Center for Development Research (ZEF).
  5. repec:dgr:kubcen:2013078 is not listed on IDEAS
  6. Erik Ansink & Arjan Ruijs, 2008. "Climate Change and the Stability of Water Allocation Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 249-266, October.
  7. 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.
  8. Fabio Zagonari, 2010. "Sustainable, Just, Equal, and Optimal Groundwater Management Strategies to Cope with Climate Change: Insights from Brazil," Water Resources Management, Springer, vol. 24(13), pages 3731-3756, October.
  9. Ambec, Stefan & Ehlers, Lars, 2008. "Sharing a river among satiable agents," Games and Economic Behavior, Elsevier, vol. 64(1), pages 35-50, September.
  10. Dinar, Ariel & Farolfi, Stefano & Patrone, Fioravante & Rowntree, Kate, 2006. "TO NEGOTIATE OR TO GAME THEORIZE: Negotiation vs. Game Theory Outcomes for Water Allocation Problems in the Kat Basin, South Africa," Working Papers 60888, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
  11. Harold Houba & Gerard van der Laan, 2013. "International Environmental Agreements for River Sharing Problems," Tinbergen Institute Discussion Papers 13-157/II, Tinbergen Institute.
  12. Janmaat, Johannus A., 2007. "Stakeholder Engagement in Land Development Decisions: A Waste of Effort?," MPRA Paper 6147, University Library of Munich, Germany.

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