A Tale of Two Joint Ventures: Jiangsu, China and Havana, Cuba: A Game-Theoretic Analysis of Public-Private Contracts in the Water Sector
Journal of Applied Economy, Symposium Issue on 'Critical Regulation,' vol. 3 (2009), pp. 39-56
14 Pages Posted: 25 Jun 2009 Last revised: 5 Dec 2014
Date Written: April 19, 2009
Although there are few applications of game theory in the water governance literature, in this paper the author applies a game-theoretic framework to public-private partnerships in the water industry, with “water industry” defined broadly to include fresh water supply, wastewater treatment, and sanitation and sewarage services. In summary, the paper (1) provides a general overview of the most common forms of contractual arrangements or public-private partnerships in the water sector, (2) reviews two recent examples of public-private partnerships in the water sector -- one in the municipality of Havana, Cuba, the other in the Jiangsu province of China, and (3) presents a generalized partnership-game model and explains the possible application of this game-theoretic model to public-private partnerships in the water sector.
Keywords: best response, internal-externality, public-private partnership
JEL Classification: C7, H4, K12
Suggested Citation: Suggested Citation