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The Sequential Equal Surplus Division for Sharing International Rivers with Bifurcations

Author

Listed:
  • Sylvain Béal

    () (CRESE, Université de Franche-comté)

  • Amandine Ghintran

    () (EQUIPPE, Université de Lille 3)

  • Eric Rémila

    () (Gate Lyon Saint-Etienne, Université de Saint-etienne)

  • Philippe Solal

    () (Gate Lyon Saint-Etienne, Université de Saint-etienne)

Abstract

We consider the problem of sharing water from a river among the group of countries located along it. The benefit of each country depends on the amount of water it consumes. An allocation of the water is efficient when it maximizes the total benefits of the countries. The problem of finding a fair welfare distribution can be modeled as a cooperative game. We introduce a new allocation rule, called the sequential equal surplus division, for sharing the total welfare resulting form the cooperation of countries along a river with bifurcations. This rule obeys the so-called Territorial Integration of all Basin States doctrine, which emphasizes compromise and fairness among countries. We provide two axiomatic characterizations of this rule.

Suggested Citation

  • Sylvain Béal & Amandine Ghintran & Eric Rémila & Philippe Solal, 2012. "The Sequential Equal Surplus Division for Sharing International Rivers with Bifurcations," Working Papers 2012-02, CRESE.
  • Handle: RePEc:crb:wpaper:2012-02
    as

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    File URL: http://crese.univ-fcomte.fr/WP-2012-02.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Lehrer, E, 1988. "An Axiomatization of the Banzhaf Value," International Journal of Game Theory, Springer;Game Theory Society, vol. 17(2), pages 89-99.
    2. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2010. "Rooted-tree solutions for tree games," European Journal of Operational Research, Elsevier, vol. 203(2), pages 404-408, June.
    3. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January.
    4. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
    5. William Thomson, 2011. "Consistency and its converse: an introduction," Review of Economic Design, Springer;Society for Economic Design, vol. 15(4), pages 257-291, December.
    6. van den Brink, René & van der Laan, Gerard & Moes, Nigel, 2012. "Fair agreements for sharing international rivers with multiple springs and externalities," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 388-403.
    7. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2012. "Weighted component fairness for forest games," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 144-151.
    8. Yuan Ju & Peter Borm & Pieter Ruys, 2007. "The consensus value: a new solution concept for cooperative games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(4), pages 685-703, June.
    9. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 187-210, February.
    10. N. Lesca, 2011. "Introduction," Post-Print halshs-00640604, HAL.
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    12. René Brink & Gerard Laan & Valeri Vasil’ev, 2007. "Component efficient solutions in line-graph games with applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(2), pages 349-364, November.
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    Citations

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    Cited by:

    1. Erik Ansink & Harold Houba, 2014. "The Economics of Transboundary River Management," Tinbergen Institute Discussion Papers 14-132/VIII, Tinbergen Institute.
    2. Erik Ansink & Hans-Peter Weikard, 2015. "Composition properties in the river claims problem," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 807-831, April.

    More about this item

    Keywords

    River TU-game; Sequential Equal Surplus Division; Water allocation; Standard solution; Consistency; Fairness; Amalgamation;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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