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The worth of a non-cooperative coalition is defined using O'Neill's (1982) bankruptcy theory as shown in Equation (2). The allocation rule can be applied to allocate the available water in a stochastic setting, state by state, without considering the uncertainty and the results obtained were in the core. These allocation outcomes are feasible as well as self-enforceable. Table 4 shows the allocation vectors obtained by applying the allocation rule state by state to a hypothetical river basin under scarcity. It is assumed here that all the agents have equal weights.

Table 4.

Water allocation vectors from the proposed allocation rule for the hypothetical river basin under bankruptcy.

Claimant Claim Estate Core allocation vectors
100 100  
200 
300 
200 100 
200 
300 
300 100 
200 
300 
Claimant Claim Estate Core allocation vectors
100 100  
200 
300 
200 100 
200 
300 
300 100 
200 
300 

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