Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2015-01-06
Number: 15-001/VIII
Author-Name: Erik Ansink
Author-Workplace-Name: VU University Amsterdam, the Netherlands
Author-Name: Michael Gengenbach
Author-Workplace-Name: Wageningen University, the Netherlands
Author-Name: Hans-Peter Weikard
Author-Workplace-Name: Wageningen University, the Netherlands
Title: River Sharing and Water Trade
Abstract: We analyse river sharing games in which a set of agents located along a river shares the available water. Using coalition theory, we find that the potential benefits of water trade may not be sufficient to make all agents in the river cooperate and acknowledge property rights as a prerequisite for trade. Specifically, a complete market for river water may not emerge if there are four or more agents along the river. Instead, a partial market may emerge where a subset of agents trades river water while other agents can take some of the river water that passes their territory.
Classification-JEL: D62, C72, Q25
Keywords: river sharing, water trade, market emergence, property rights, coalition stability
File-Url: https://papers.tinbergen.nl/15001.pdf
File-Format: application/pdf
File-Size: 175292 bytes
Handle: RePEc:tin:wpaper:20150001