Arbeitspapier
Polluted River Problems and Games with a Permission Structure
Polluted rivers are harmful to human, animals and plants living along it. To reduce the harm, cleaning costs are generated. However, when the river passes through several different countries or regions, a relevant question is how should the costs be shared among the agents. Ni and Wang (2007) first consider this problem as cost sharing problems on a river network, shortly called polluted river problems. They consider rivers with one spring which was generalized by Dong, Ni, and Wang (2012) to rivers with multiple springs. They introduce and axiomatize three cost sharing methods: the Local Responsibility Sharing (LRS) method, the Upstream Equal Sharing (UES) method and the Downstream Equal Sharing (DES) method. In this paper, we show that the UES and DES methods can also be obtained as the conjunctive permission value of an associated game with a permission structure, where the permission structure corresponds to the river structure and the game is determined by the cleaning costs. Then, we show that several axiomatizations of the conjunctive permission value also give axiomatizations of the UES and DES methods, of which one is comparable with the one from Dong, Ni, and Wang (2012). Besides, by applying another solution, the disjunctive permission value, to polluted river games with a permission structure we obtain a new cost allocation method for polluted river problems. We axiomatize this solution and compare it with the UES method.
- Language
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Englisch
- Bibliographic citation
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Series: Tinbergen Institute Discussion Paper ; No. 15-108/II
- Classification
-
Wirtschaft
Cooperative Games
Allocative Efficiency; Cost-Benefit Analysis
Externalities
- Subject
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Polluted river
cost sharing
axiomatization
permission values
- Event
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Geistige Schöpfung
- (who)
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van den Brink, René
He, Simin
Huang, Jia-Ping
- Event
-
Veröffentlichung
- (who)
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Tinbergen Institute
- (where)
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Amsterdam and Rotterdam
- (when)
-
2015
- Handle
- Last update
-
10.04.2025, 12:11 PM CEST
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- van den Brink, René
- He, Simin
- Huang, Jia-Ping
- Tinbergen Institute
Time of origin
- 2015
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An Algorithm for Computing the Nucleolus of Disjunctive Additive Games with An Acyclic Permission Structure
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A Class of Consistent Share Functions for Games in Coalition Structure
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Games with a Permission Structure: a survey on generalizations and applications
The locally partial permission value for games with a permission structure
Games with a Local Permission Structure: Separation of Authority and Value Generation
Computation of the Nucleolus for a Class of Disjunctive Games with a Permission Structure
An Algorithm for Computing the Nucleolus of Disjunctive Additive Games with An Acyclic Permission Structure
The Average Tree Permission Value for Games with a Permission Tree
Comparable Characterizations of Four Solutions for Permission Tree Games
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A Class of Consistent Share Functions for Games in Coalition Structure
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