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Applications of negotiation theory to water issues

Author

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  • Carraro, Carlo
  • Marchiori, Carmen
  • Sgobbi, Alessandra

Abstract

The authors review the applications of noncooperative bargaining theory to waterrelated issues-which fall in the category of formal models of negotiation. They aim to identify the conditions under which agreements are likely to emerge and their characteristics, to support policymakers in devising the"rules of the game"that could help obtain a desired result. Despite the fact that allocation of natural resources, especially trans-boundary allocation, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, the authors first discuss the noncooperative bargaining models applied to water allocation problems found in the literature. Key findings include the important role noncooperative negotiations can play in cases where binding agreements cannot be signed; the value added of politically and socially acceptable compromises; and the need for a negotiated model that considers incomplete information over the negotiated resource.

Suggested Citation

  • Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Applications of negotiation theory to water issues," Policy Research Working Paper Series 3641, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3641
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    References listed on IDEAS

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    Cited by:

    1. Soesja Grundel & Peter Borm & Herbert Hamers, 2013. "Resource allocation games: a compromise stable extension of bankruptcy games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(2), pages 149-169, October.
    2. Dinar, Ariel & Farolfi, Stefano & Patrone, Fioravante & Rowntree, Kate, 2006. "TO NEGOTIATE OR TO GAME THEORIZE: Negotiation vs. Game Theory Outcomes for Water Allocation Problems in the Kat Basin, South Africa," Working Papers 60888, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    3. Zareena Begum Irfan & Jeeva Mary Jacob, 2016. "Game Theoretical Approach to Regulate the Public-Owned River Water Utilities: A case study of Cauvery River," Working Papers 2016-142, Madras School of Economics,Chennai,India.
    4. repec:wsi:igtrxx:v:10:y:2008:i:03:n:s0219198908001935 is not listed on IDEAS
    5. Bhaduri, Anik & Perez, Nicostrato D. & Liebe, Jens, 2008. "Scope and Sustainability of Cooperation in Transboundary Water Sharing of the Volta River," Discussion Papers 43324, University of Bonn, Center for Development Research (ZEF).
    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. Harold Houba, 2008. "Computing Alternating Offers And Water Prices In Bilateral River Basin Management," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 257-278.
    8. Zareena Begum Irfan & Jeeva Mary Jacob, 2016. "Game Theoretical Approach to Regulate the Public-Owned River Water Utilities: A Case Study of Cauvery River," Working Papers id:10746, eSocialSciences.
    9. repec:spr:compst:v:78:y:2013:i:2:p:149-169 is not listed on IDEAS
    10. Fabio Zagonari, 2010. "Sustainable, Just, Equal, and Optimal Groundwater Management Strategies to Cope with Climate Change: Insights from Brazil," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(13), pages 3731-3756, October.
    11. Grundel, S. & Borm, P.E.M. & Hamers, H.J.M., 2011. "A Compromise Stable Extension of Bankruptcy Games : Multipurpose Resource Allocation," Discussion Paper 2011-029, Tilburg University, Center for Economic Research.
    12. repec:spr:waterr:v:31:y:2017:i:9:d:10.1007_s11269-017-1648-z is not listed on IDEAS
    13. Harold Houba & Gerard Laan & Yuyu Zeng, 2015. "International Environmental Agreements for River Sharing Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 855-872, December.
    14. Peter Egger & Christoph Jeßberger & Mario Larch, 2011. "Trade and investment liberalization as determinants of multilateral environmental agreement membership," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(6), pages 605-633, December.
    15. Erik Ansink & Arjan Ruijs, 2008. "Climate Change and the Stability of Water Allocation Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 249-266, October.
    16. Grundel, S. & Borm, P.E.M. & Hamers, H.J.M., 2013. "Resource Allocation Problems with Concave Reward Functions," Discussion Paper 2013-070, Tilburg University, Center for Economic Research.
    17. Ambec, Stefan & Ehlers, Lars, 2008. "Sharing a river among satiable agents," Games and Economic Behavior, Elsevier, vol. 64(1), pages 35-50, September.
    18. Christoph Jeßberger, 2011. "Multilateral Environmental Agreements up to 2050: Are They Sustainable Enough?," ifo Working Paper Series 98, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. repec:kap:enreec:v:68:y:2017:i:2:d:10.1007_s10640-016-0013-7 is not listed on IDEAS
    20. Janmaat, John, 2008. "Playing monopoly in the creek: Imperfect competition, development, and in-stream flows," Resource and Energy Economics, Elsevier, vol. 30(3), pages 455-473, August.
    21. Carraro, Carlo & Sgobbi, Alessandra, 2007. "Modelling Negotiated Decision Making: A Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," CEPR Discussion Papers 6424, C.E.P.R. Discussion Papers.
    22. Alban Thomas & Vera Zaporozhets, 2017. "Bargaining Over Environmental Budgets: A Political Economy Model with Application to French Water Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 227-248, October.
    23. Janmaat, Johannus A., 2007. "Stakeholder Engagement in Land Development Decisions: A Waste of Effort?," MPRA Paper 6147, University Library of Munich, Germany.

    More about this item

    Keywords

    Water Supply and Sanitation Governance and Institutions; Town Water Supply and Sanitation; Water and Industry; Environmental Economics&Policies; Water Conservation;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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