Kim Hang Pham Do

The Shapley Value for Partition Function Form Games

Different axiomatizations of the Shapley value for TU games can be found in the literature. The Shapley value has been generalized in several ways to the class of games in partition function form. In this paper we discuss another generalization of the Shapley value and provide a characterization.

Oligopoly games with and without transferable technologies

In this paper standard oligopolies are interpreted in two ways, namely as oligopolies without transferable technologies and as oligopolies with transferable technologies.From a cooperative point of view this leads to two different classes of cooperative games.We show that cooperative oligopoly games without transferable technologies are convex games and that cooperative oligopoly games with transferable are totally balanced, but not necessarily convex.

Connection Problems in Mountains and Monotonic Allocation Schemes

Directed minimum cost spanning tree problems of a special kind are studied, namely those which show up in considering the problem of connecting units (houses) in mountains with a purifier. For such problems an easy method is described to obtain a minimum cost spanning tree. The related cost sharing problem is tackled by considering the corresponding cooperative cost game with the units as players and also the related connection games, for each unit one. The cores of the connection games have a simple structure and each core element can be extended to a population monotonic allocation scheme (pmas) and also to a bi-monotonic allocation scheme. These pmas-es for the connection games result in pmas-es for the cost game.

Saving a river: a joint management approach to the Mekong River Basin

The Mekong River Basin (MRB) is a trans-boundary river shared by six countries. The governance by the Mekong River Commission (MRC) of the Lower Mekong Basin (LMB) is weak. This study investigates the welfare effects in the year 2030 arising from strengthening the MRCs governance versus joint management of the entire MRB. Without joint management, strengthening the MRCs governance has a huge potential to achieve welfare gains and it requires that the interests of all stakeholders be equally balanced. A bargaining approach shows that the LMB has no incentive to negotiate with China and is better off strengthening the MRCs governance instead. If such strengthening could be realized, further welfare gains of joint management by a wider and stronger MRC, including China, would be very small.

TRANSBOUNDARY WATER MANAGEMENT: CAN ISSUE LINKAGE HELP MITIGATE EXTERNALITIES?

Managing transboundary river basins is never easy and usually involves conflicts. This paper introduces a special class of games with externalities and issue linkage to promote cooperation on transboundary water resources. The paper analyzes whether issue linkages can be used as a form of negotiations on sharing benefits and mitigating conflicts. It is shown that whenever opportunities for linkages exist, countries may indeed contribute towards cooperation. In particular, if the linked games are convex, the grand coalition is the only optimal level of social welfare.

Fishery Management Games: How to Admit New Members and Reduce Harvesting Levels

This paper applies game theory to address the problem of allocating profits among fishing nations, once the countries concerned have expressed an interest in achieving an agreement through a Regional Fishery Management Organization (RFMO). Proposing the population monotonic allocation scheme as management rule for division of profits, we argue that existing RFMOs can be expanded by means of the Shapley value. We also show that adjustment from the Nash equilibrium to sustainable or more efficient can be achieved by means of the proportional rule without harming any of the countries involved.

Capacity Choice of Dams Under Rivalry Use and Externalities

This paper studies the relation between optimal dam capacity and water management under rivalry uses and externalities. We extend the hydropower generation model, based on Haddad (2011), by including the competing use of water resource, non-linear building cost of dam capacity and externalities in a welfare optimization model. We obtain the optimal dam capacity for multi-functional dams such as providing infrastructure for industrial and households water use, conjunctive use of hydropower generation and irrigation; storing water in the wet season for use in the dry season, and mitigating flooding damages. The optimal solution shows that optimal dam capacity is characterized by the marginal benefits of hydropower generation, the marginal costs of flooding damages, and the constraining factors. Moreover, the optimal water management can be achieved by using derived sea sonal prices in a decentralized manner.

Free Riding Problems and Feasible Allocations for Regional Fishery Management Organizations

This paper analyzes the free riding problem from a game theoretic point of view. The feasible proportional allocation rules for a special class of free riding problems are studied. Some key practical and theoretical properties of these rules are developed that can be used to stimulate cooperation and to discourage free riding behaviors. Applications to the management of the Baltic Sea cod fishery and the Norwegian herring fishery are presented.