Person:
Alcalde Unzu, Jorge

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Alcalde Unzu

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Jorge

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EconomĆ­a

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INARBE. Institute for Advanced Research in Business and Economics

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0000-0003-1839-6245

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4338

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  • PublicationOpen Access
    Allocating the costs of cleaning a river: expected responsibility versus median responsibility
    (Springer, 2020) Alcalde Unzu, Jorge; GĆ³mez RĆŗa, MarĆ­a; Molis BaƱales, Elena; EconomĆ­a; Ekonomia
    We consider the problem of cleaning a transboundary river, proposed by Ni and Wang (Games Econ Behav 60:176ā€“186, 2007). A river is modeled as a segment divided into subsegments, each occupied by one region, from upstream to downstream. The waste is transferred from one region to the next at some rate. Since this transfer rate may be unknown, the social planner could have uncertainty over each regionā€™s responsibility. Two natural candidates to distribute the costs in this setting would be the method that assigns to each region its expected responsibility and the one that assigns to each region its median responsibility. We show that the latter is equivalent to the Upstream Responsibility method (Alcalde-Unzu et al. in Games Econ Behav 90:134ā€“150, 2015) and the former is a new method that we call Expected Responsibility. We compare both solutions and analyze them in terms of a new property of monotonicity.