paper
The Economic Analysis of the Common Pool Method through the HARA Utility Functions
Mu Lin, Di Zhang, Ben Chen, Hang Zheng
The Economic Analysis of the Common Pool Method through the HARA Utility Functions
Mu Lin, Di Zhang, Ben Chen, Hang Zheng
paper2024-08-09English
behavioral economicsarxiv
Description
Water market is a contemporary marketplace for water trading and is deemed to one of the most efficient instruments to improve the social welfare. In modern water markets, the two widely used trading systems are an improved pair-wise trading, and a 'smart market' or common pool method. In comparison with the economic model, this paper constructs a conceptual mathematic model through the HARA utility functions. Mirroring the concepts such as Nash Equilibrium, Pareto optimal and stable matching in...
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