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Can issue linkage help mitigate externalities and enhance cooperation

Author

Listed:
  • Pham Do, Kim Hang
  • Dinar, Ariel
  • McKinney, Daene

Abstract

Managing transboundary river basins is never easy and usually involves conflicts. This paper introduces a special class of games with externalities and issue linkage to promote cooperation on transboundary water resources. The paper analyzes whether issue linkages can be used as a form of negotiations on sharing benefits and mitigating conflicts. It is shown that whenever opportunities for linkages exist, countries may indeed contribute towards cooperation. In particular, if the linked games are convex, the grand coalition is the only optimal level of social welfare

Suggested Citation

  • Pham Do, Kim Hang & Dinar, Ariel & McKinney, Daene, 2011. "Can issue linkage help mitigate externalities and enhance cooperation," MPRA Paper 37408, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37408
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    File URL: https://mpra.ub.uni-muenchen.de/37408/1/MPRA_paper_37408.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Ambec, Stefan & Dinar, Ariel, 2010. "Hot Stuff: Would Climate Change Alter Transboundary Water Sharing Treaties?," IDEI Working Papers 656, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 24(1), December.
    4. CHANDER, Parkash, 2010. "Cores of games with positive externalities," CORE Discussion Papers 2010004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Neda A. Zawahri & Ariel Dinar & Getachew Nigatu, 2016. "Governing international freshwater resources: an analysis of treaty design," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(2), pages 307-331, April.
    6. Kemfert, Claudia, 2004. "Climate coalitions and international trade: assessment of cooperation incentives by issue linkage," Energy Policy, Elsevier, vol. 32(4), pages 455-465, March.
    7. repec:cup:apsrev:v:85:y:1991:i:03:p:701-726_17 is not listed on IDEAS
    8. Hafalir, Isa E., 2007. "Efficiency in coalition games with externalities," Games and Economic Behavior, Elsevier, vol. 61(2), pages 242-258, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    games with externalities; convexity; s-core; transboundary rivers; issue linkage; international water sharing agreement;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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