Modeling a joint project coordination scheme for renewal development of water resources under uncertainties

The coordination scheme for reservoir renewal projects is suggested. It is assumed that asymmetry of information on benefits exists between agents (players) participating in the projects. A neutral organization called “planning coordinator” exercises this coordination scheme. First, it is mathematically proved that there exist incentives for participating players to make false statements to attain greater benefits unduly at the sacrifice of the counterpart under the conventional allocation scheme. Then, the coordination scheme in which discrete payment options with a finite number is suggested. In the coordination scheme, players report to the planning coordinator about prioritization of available alternatives of action relative to a status quo alternative. Such a payment option set is presented to the players in order to maximize the probability that renewal projects are realized