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Competition and cooperation in the exploitation of the groundwater resource

Author

Listed:
  • Marta Biancardi

    (University of Foggia)

  • Lucia Maddalena

    (University of Foggia)

Abstract

We study the exploitation of a common groundwater resource, first as a static and then as a differential game, in order to take into account the strategic and dynamic interactions among the users of the resource. We suppose that firms can form coalitions or can decide not to cooperate. The non-cooperation regime is characterized by pumping that lead to depletion of the aquifer; the cooperation preserves the resource. Open-loop and feedback equilibria have been computed and compared in order to characterize the existence of cooperators and defectors in water resources management.

Suggested Citation

  • Marta Biancardi & Lucia Maddalena, 2018. "Competition and cooperation in the exploitation of the groundwater resource," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 219-237, November.
    • Handle: RePEc:spr:decfin:v:41:y:2018:i:2:d:10.1007_s10203-018-0217-0
    DOI: 10.1007/s10203-018-0217-0
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    References listed on IDEAS

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    1. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    2. Santiago Rubio & Begoña Casino, 2003. "Strategic Behavior and Efficiency in the Common Property Extraction of Groundwater," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 73-87, September.
    3. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    4. Rubio, Santiago J. & Casino, Begona, 2001. "Competitive versus efficient extraction of a common property resource: The groundwater case," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1117-1137, August.
    5. Gardner M. Brown, 2000. "Renewable Natural Resource Management and Use without Markets," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 875-914, December.
    6. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Discussion Papers in Economics at the University of Washington 0025, Department of Economics at the University of Washington.
    7. Esteban, Encarna & Albiac, José, 2011. "Groundwater and ecosystems damages: Questioning the Gisser-Sánchez effect," Ecological Economics, Elsevier, vol. 70(11), pages 2062-2069, September.
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    Cited by:

    1. Mikhail Anufriev & Davide Radi & Fabio Tramontana, 2018. "Some reflections on past and future of nonlinear dynamics in economics and finance," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 91-118, November.
    2. Marta Biancardi & Gianluca Iannucci & Giovanni Villani, 2022. "Groundwater Exploitation and Illegal Behaviors in a Differential Game," Dynamic Games and Applications, Springer, vol. 12(3), pages 996-1009, September.
    3. Marta Biancardi & Gianluca Iannucci & Giovanni Villani, 2023. "Groundwater management and illegality in a differential-evolutionary framework," Computational Management Science, Springer, vol. 20(1), pages 1-17, December.
    4. Marta Biancardi & Gianluca Iannucci & Giovanni Villani, 2022. "An evolutionary game on compliant and non-compliant firms in groundwater exploitation," Annals of Operations Research, Springer, vol. 318(2), pages 831-847, November.

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    More about this item

    Keywords

    Groundwater extraction; Competition and cooperation; Differential game;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D99 - Microeconomics - - Micro-Based Behavioral Economics - - - Other
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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