Sequential Sharing Rules for River Sharing Problems

29 Pages Posted: 8 Feb 2010

See all articles by Erik Ansink

Erik Ansink

VU University Amsterdam - Department of Spatial Economics

Hans-Peter Weikard

Wageningen UR - School of Social Sciences

Date Written: February 8, 2010

Abstract

We analyse the redistribution of a resource among agents who have claims to the resource and who are ordered linearly. A well known example of this particular situation is the river sharing problem. We exploit the linear order of agents to transform the river sharing problem to a sequence of two-agent river sharing problems. These reduced problems are mathematically equivalent to bankruptcy problems and can therefore be solved using any bankruptcy rule. Our proposed class of solutions, that we call sequential sharing rules, solves the river sharing problem. Our approach extends the bankruptcy literature to settings with a sequential structure of both the agents and the resource to be shared. In the paper, we first characterise a class of sequential sharing rules. Subsequently, we apply sequential sharing rules based on four classical bankruptcy rules, assess their properties, and compare them to four alternative solutions to the river sharing problem.

Suggested Citation

Ansink, Erik and Weikard, Hans-Peter, Sequential Sharing Rules for River Sharing Problems (February 8, 2010). FEEM Working Paper No. 114.2009. Available at SSRN: https://ssrn.com/abstract=1549638 or http://dx.doi.org/10.2139/ssrn.1549638

Erik Ansink (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Hans-Peter Weikard

Wageningen UR - School of Social Sciences ( email )

De Leeuwenborch
Hollandseweg 1
6706 KN Wageningen
Netherlands
+31 317 48 24 94 (Phone)
+31 317 48 49 33 (Fax)

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