Water Allocation Strategies for the Kat Basin in South Africa: Comparing Negotiation Tools and Game Theory Models

28 Pages Posted: 20 Apr 2016

See all articles by Ariel Dinar

Ariel Dinar

World Bank - Agriculture and Rural Development Department

Stefano Farolfi

University of Pretoria

Fioravante Patrone

Università degli Studi di Genova - Dipartimento di Matematica

Kate Rowntree

Rhodes University

Date Written: December 2006

Abstract

Governments and developing agencies promote participatory approaches in solving common pool resource problems, such as in the water sector. Two main participatory approaches have been applied separately, namely negotiation and mediation. In this paper the authors apply the Role-Playing Game that is a component of the Companion Modeling approach, a negotiation procedure, and the Cooperative Game Theory (Shapley value and the Nucleolus solution concepts) that can be mirrored as a mediated mechanism to a water allocation problem in the Kat watershed in South Africa. While the absolute results of the two approaches differ, the negotiation and the cooperative game theory provide similar shares of the benefit allocated to the players from various cooperative arrangements. By evaluating the two approaches, the authors provide useful tips for future extension for both the Role-Playing Games and the Cooperative Game Theory applications.

Keywords: Water Supply and Systems, Water Supply and Sanitation Governance and Institutions, Environmental Economics&Policies, Water Conservation, Town Water Supply and Sanitation

Suggested Citation

Dinar, Ariel and Farolfi, Stefano and Patrone, Fioravante and Rowntree, Kate, Water Allocation Strategies for the Kat Basin in South Africa: Comparing Negotiation Tools and Game Theory Models (December 2006). World Bank Policy Research Working Paper No. 4083. Available at SSRN: https://ssrn.com/abstract=950453

Ariel Dinar (Contact Author)

World Bank - Agriculture and Rural Development Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-0434 (Phone)

Stefano Farolfi

University of Pretoria

Physical Address Economic and Management Sciences
Pretoria, Gauteng 0002
South Africa

Fioravante Patrone

Università degli Studi di Genova - Dipartimento di Matematica ( email )

Via Dodecaneso 35
16146 Genoa
Italy
+39-010-3536835 (Phone)
+39-010-3536752 (Fax)

Kate Rowntree

Rhodes University

Fine Art Department
Rhodes University, PO Box 94
Grahamstown 6140, Eastern cape 6140
South Africa

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