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Contribution to Book
Jiangsu, China and Havana, Cuba: a Game-Theoretic Analysis of Public-Private Contracts in the Water Sector
Critical Regulation (2010)
  • F.E. Guerra-Pujol, Barry University
Abstract

Game theory, a branch of mathematics, has been applied to a wide variety of fields and problems, including military strategy, evolutionary biology, and the law. In this paper, we shall apply a game-theoretic framework to a subset of contracts in the water industry. These contracts are part of a broader political-economic trend: the creation of hybrid “public-“private partnerships,” not only in the water sector, but also in the fields of energy, telecommunications, transportation, and many other areas of the economy. Since a significant fraction of new infrastructure projects are now in the form of public-private joint ventures, and since this trend is likely to continue in the foreseeable future, the model presented in this paper may potentially have a wide application. The paper is divided into five parts. Following this brief introduction, part two provides a general overview of the most common forms of contractual arrangements or public-private partnerships in the water industry. Part three then reviews two recent examples of large-scale public-private contracts -- one in the municipality of Havana, Cuba, the other in the Jiangsu province of the People’s Republic of China. Next, part four presents a generalized partnership-game model and explains the possible application of this game-theoretic model to public-private contracts in the water sector. Lastly, part five concludes by identifying areas for future research.

Keywords
  • partnership game,
  • public-private contracts,
  • underinvestment,
  • water governance
Disciplines
Publication Date
2010
Editor
H. Trent Moore; Aron Ping D'Souza
Publisher
Elias Clark
ISBN
978-0-9807318-2-8
Citation Information
F.E. Guerra-Pujol. "Jiangsu, China and Havana, Cuba: a Game-Theoretic Analysis of Public-Private Contracts in the Water Sector" Melbourne, AustraliaCritical Regulation Vol. 3 (2010)
Available at: http://works.bepress.com/f_e_guerra_pujol/8/