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.
- partnership game,
- public-private contracts,
- water governance
Available at: http://works.bepress.com/f_e_guerra_pujol/8/