IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4072.html
   My bibliography  Save this paper

Cooperative game theory and its application to natural, environmental, and water resource issues : 1. basic theory

Author

Listed:
  • Parrachino, Irene
  • Zara, Stefano
  • Patrone, Fioravante

Abstract

Game theory provides useful insights into the way parties that share a scarce resource may plan their use of the resource under different situations. This review provides a brief and self-contained introduction to the theory of cooperative games. It can be used to get acquainted with the basics of cooperative games. Its goal is also to provide a basic introduction to this theory, in connection with a couple of surveys that analyze its use in the context of environmental problems and models. The main models (bargaining games, transfer utility, and non-transfer utility games) and issues and solutions are considered: bargaining solutions, single-value solutions like the Shapley value and the nucleolus, and multi-value solutions such as the core. The cooperative game theory (CGT) models that are reviewed in this paper favor solutions that include all possible players and ignore the strategic stages leading to coalition building. They focus on the possible results of the cooperation by answering questions such as: Which coalitions can be formed? And how can the coalitional gains be divided to secure a sustainable agreement? An important aspect associated with the solution concepts of CGT is the equitable and fair sharing of the cooperation gains.

Suggested Citation

  • Parrachino, Irene & Zara, Stefano & Patrone, Fioravante, 2006. "Cooperative game theory and its application to natural, environmental, and water resource issues : 1. basic theory," Policy Research Working Paper Series 4072, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4072
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/11/21/000016406_20061121153559/Rendered/PDF/wps4072.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hurt, Wesley & Osório, António (António Miguel), 2014. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/237596, Universitat Rovira i Virgili, Department of Economics.
    2. repec:spr:waterr:v:31:y:2017:i:13:d:10.1007_s11269-017-1746-y is not listed on IDEAS
    3. Osório, António (António Miguel), 2016. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/266574, Universitat Rovira i Virgili, Department of Economics.

    More about this item

    Keywords

    Environmental Economics&Policies; Economic Theory&Research; Livestock&Animal Husbandry; Education for the Knowledge Economy; Education for Development (superceded);

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4072. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.