An Application of Stochastic Stackelberg Differential Games in Conflict Management

There is broad agreement that global climate change may have substantial impacts on water resources. As multiple countries share a river, the likelihood of a water resource conflict stemming from climate change is higher in a transboundary setting. In this talk, using the framework of a stochastic Stackelberg differential game, we will explore the scope of cooperative bargain between an upstream and a downstream country over the level of transboundary water sharing by negotiating some non-water related issues of mutual interest to both the countries, given uncertainty in the river flow due to climate change. [Joint work with A.~Bhaduri (University of Bonn), J.~Liebe (University of Bonn), E.~Barbier (University of Wyoming)].