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Economic And Political Considerations In Regional Cooperation Models


  • Dinar, Ariel
  • Wolf, Aaron T.


Cooperation among players requires a realization of economic benefits to all players and a meeting of efficiency requirements through economically driven allocations. Cooperation among political (and sometimes hostile) players may not meet these requirements. Political considerations, usually ignored in economic analyses, can hinder or even block possible arrangements. A framework is proposed that includes both economic and political considerations for evaluating transfers or trades of scarce resources. This method quantifies both the economic payoffs using n-person game theory and the political likelihood of any of the coalitions actually forming, using the PRINCE Political Accounting System. The economic-political approach is applied to a case of a potential water transfer in the western Middle East. Results suggest that incorporating political considerations in the analysis stabilizes the regional solution suggested by economic-related allocations.

Suggested Citation

  • Dinar, Ariel & Wolf, Aaron T., 1997. "Economic And Political Considerations In Regional Cooperation Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), April.
  • Handle: RePEc:ags:arerjl:31355

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    References listed on IDEAS

    1. Gary D. Lynne & J. S. Shonkwiler & Michael E. Wilson, 1991. "Water Permitting Behavior under the 1972 Florida Water Resources Act," Land Economics, University of Wisconsin Press, vol. 67(3), pages 340-351.
    2. Dinar, Ariel & Wolf, Aaron, 1994. "International Markets for Water and the Potential for Regional Cooperation: Economic and Political Perspectives in the Western Middle East," Economic Development and Cultural Change, University of Chicago Press, vol. 43(1), pages 43-66, October.
    3. repec:cup:apsrev:v:48:y:1954:i:03:p:787-792_00 is not listed on IDEAS
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    Cited by:

    1. Schiff, Maurice & Winters, L. Alan, 2002. "Regional cooperation, and the role of international organizations and regional integration," Policy Research Working Paper Series 2872, The World Bank.
    2. Gichuki, Francis & McCornick, Peter G., 2008. "International experiences of water transfers: relevance to India," IWMI Conference Proceedings 235175, International Water Management Institute.
    3. Kelly Tiller & Paul Jakus, 2004. "Explaining Cooperation in Municipal Solid Waste Management," Working Papers 2004-07, Utah State University, Department of Economics.
    4. Tiller, Kelly & Jakus, Paul M., 2005. "Applying the Miceli Model to Explain Cooperation in Municipal Solid Waste Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), October.

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    Political Economy;


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