) located along the river. The benefit of each agent depends on the amount of water consumed by the agent. An allocation of the … water among the agents is efficient when it maximizes the total benefits. To sustain an efficient water allocation, the … agents can compensate each other by paying monetary transfers. Every water allocation and transfer schedule yields a welfare …

-firm-buyer games have non-empty core. We show that for these games the core coincides with the classical bargaining set (Davis and …