A solution for the flood cost sharing problem

Abraham, A and Ramachandran, P (2020) A solution for the flood cost sharing problem. In: Economics Letters, 189 .

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Abstract

In this study, we model and study the flood cost sharing problem on a successive transboundary river shared between n-riparian states. We propose a Sequential Upstream Proportional Allocation (SUPA) solution and axiomatically characterise it. We make use of the Extended Producer Responsibility principle to define a characteristic form game which models cooperative behaviour among riparian states. We show that the proposed sharing rule coincides with the Shapley value of this game. The proposed allocation is also a member of the Core of the game.

Item Type:	Journal Article
Publication:	Economics Letters
Publisher:	Elsevier B.V.
Additional Information:	The copyright of this article belongs to Elsevier B.V.
Keywords:	Cost sharing; Transboundary floodsRiver; sharing problemShapley; value
Department/Centre:	Division of Interdisciplinary Sciences > Management Studies
Date Deposited:	10 Mar 2020 10:44
Last Modified:	10 Mar 2020 10:44
URI:	http://eprints.iisc.ac.in/id/eprint/64636

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