A Cooperative Game for Siting Noxious Facilities: Theory and Experimental Design

摘要: The siting of noxious facilities is usually a reason for conflict: as society we want them, but individuals (and often communities) do not them close by. Faced with this problem, economists have used several methods such lotteries, auctions or insurance policies. However, all those mechanisms theoretical shortcomings. Therefore, propose new approach based on voluntary exchange. In order to reduce transaction costs, introduce an arbitrator that proposes surplus distribution and host community. main question in paper determine which distributions it has quickly reach agreement. To end, asymmetric cooperative game constructed three classical solution concept are studied after adaptation the context game. Finally, explore predictive power these solutions by implementing laboratory bargaining experiments.