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Congestion in irrigation problems

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  • Paula Jaramillo

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Abstract

Consider a problem in which the cost of building an irrigation canal has to be divided among a set of people. Each person has different needs. When the needs of two or more people overlap, there is congestion. In problems without congestion, a unique canal serves all the people and it is enough to finance the cost of the largest need to accommodate all the other needs. In contrast, when congestion is considered, more than one canal might need to be built and each canal has to be financed.In problems without congestion, axioms related with fairness (equal treatment of equals) and group participation constraints (no-subsidy or core constraints) are compatible. With congestion, we show that these two axioms are incompatible.We define weaker axioms of fairness (equal treatment of equals per canal) and group participation constraints (no-subsidy across canals). These axioms in conjunction with a solidarity axiom (congestion monotonicity) and another axiom (independence of at-least-as-large-length) characterize the sequential weighted contribution family. Moreover, when we include a stronger version of congestion monotonicity and other axioms, we characterize subfamilies of these rules.

Suggested Citation

  • Paula Jaramillo, 2013. "Congestion in irrigation problems," DOCUMENTOS CEDE 010553, UNIVERSIDAD DE LOS ANDES-CEDE.
  • Handle: RePEc:col:000089:010553
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    File URL: http://economia.uniandes.edu.co/publicaciones/dcede2013-17.pdf
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    References listed on IDEAS

    as
    1. Potters, Jos & Sudholter, Peter, 1999. "Airport problems and consistent allocation rules," Mathematical Social Sciences, Elsevier, vol. 38(1), pages 83-102, July.
    2. Aadland, David & Kolpin, Van, 1998. "Shared irrigation costs: An empirical and axiomatic analysis," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 203-218, March.
    3. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
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    More about this item

    Keywords

    cost sharing; fairness; airport problems; public goods; congestion;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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