Journal
GAMES AND ECONOMIC BEHAVIOR
Volume 90, Issue -, Pages 134-150Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/j.geb.2015.02.008
Keywords
Cost allocation; Waste river; Responsibility; Characterization
Categories
Funding
- Spanish Government [ECO2012-34202, ECO2011-23460, ECO2012-31346, ECO2013-44879-R]
- Fundacion Ramon Areces
- Galician Government [2013XGCEDU08072013EMER]
- Consejeria de Economia, Innovacion, Ciencia y Empleo, Junta de Andalucia [SEJ-492, SEJ-1436]
- Basque Government [IT568-13]
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The cleaning up of waste present in transboundary rivers, which requires the cooperation of different authorities, is a problematic issue, especially when responsibility for the discharge of the waste is not well-defined. Following Ni and Wang (2007) we assume that a river is a segment divided into several regions from upstream to downstream. We show that when the transfer rate of the waste is unknown, the clean-up cost vector provides useful information for estimating some limits in regard to the responsibility of each region. We propose a cost allocation rule, the Upstream Responsibility rule, which takes into account these limits in distributing costs fairly and we provide an axiomatic characterization of this rule via certain properties based on basic ideas concerning the responsibility of regions. (C) 2015 Elsevier Inc. All rights reserved.
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