@article{ART001429713},
author={Chongwon Kim and Han, Dong-Geun},
title={Game Theory Approach for Pricing of Bulk Water Supply System},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2010},
volume={64},
pages={113-125},
doi={10.15793/kspr.2010.64..007}
TY - JOUR
AU - Chongwon Kim
AU - Han, Dong-Geun
TI - Game Theory Approach for Pricing of Bulk Water Supply System
JO - The Korea Spatial Planning Review
PY - 2010
VL - 64
IS - null
PB - 국토연구원
SP - 113
EP - 125
SN - 1229-8638
AB - This study examines strategic behaviors between local government and the Korea Water Resource Corporation(KWRC, hereafter) in making decisions about the investment on local government's own water-producing facilities, and in KWRC's setting price of the water that sells to the local government. Our theoretic model shows that in a non-cooperative game situation, social inefficiency could occur because the local government has incentives to invest too much on its own water-producing facilities.
The model also demonstrates that mutually cooperative actions between the two parties could lead to a lower price of water, and at the same time. could avoid the socially wasteful over-investment in water-producing facilities by the local government.
Moreover our extended model, a sequential game, shows that the social losses could worsen when local government takes the role of the first mover in the game.
The results of the study suggest that central government needs to step in to promote coordination between the interests of the local government and KWRC, in order to improve social efficiency.
KW - Game Theory;Non-cooperative Game;Nash Equilibrium;Sequential Game;Water Price;Multiple Water Works
DO - 10.15793/kspr.2010.64..007
ER -
Chongwon Kim and Han, Dong-Geun. (2010). Game Theory Approach for Pricing of Bulk Water Supply System. The Korea Spatial Planning Review, 64, 113-125.
Chongwon Kim and Han, Dong-Geun. 2010, "Game Theory Approach for Pricing of Bulk Water Supply System", The Korea Spatial Planning Review, vol.64, pp.113-125. Available from: doi:10.15793/kspr.2010.64..007
Chongwon Kim, Han, Dong-Geun "Game Theory Approach for Pricing of Bulk Water Supply System" The Korea Spatial Planning Review 64 pp.113-125 (2010) : 113.
Chongwon Kim, Han, Dong-Geun. Game Theory Approach for Pricing of Bulk Water Supply System. 2010; 64 113-125. Available from: doi:10.15793/kspr.2010.64..007
Chongwon Kim and Han, Dong-Geun. "Game Theory Approach for Pricing of Bulk Water Supply System" The Korea Spatial Planning Review 64(2010) : 113-125.doi: 10.15793/kspr.2010.64..007
Chongwon Kim; Han, Dong-Geun. Game Theory Approach for Pricing of Bulk Water Supply System. The Korea Spatial Planning Review, 64, 113-125. doi: 10.15793/kspr.2010.64..007
Chongwon Kim; Han, Dong-Geun. Game Theory Approach for Pricing of Bulk Water Supply System. The Korea Spatial Planning Review. 2010; 64 113-125. doi: 10.15793/kspr.2010.64..007
Chongwon Kim, Han, Dong-Geun. Game Theory Approach for Pricing of Bulk Water Supply System. 2010; 64 113-125. Available from: doi:10.15793/kspr.2010.64..007
Chongwon Kim and Han, Dong-Geun. "Game Theory Approach for Pricing of Bulk Water Supply System" The Korea Spatial Planning Review 64(2010) : 113-125.doi: 10.15793/kspr.2010.64..007
