Self-Induced Coalition Formation between Jurisdictions and Costs Allocation Rules for Development of Infrastructure

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This research project addresses the growing concern for decentralization of administrative powers to local governments in Japan. This drive for decentralization will accelerate local autonomous communities to become more special and unique than others and thus to become more vitalized than now. A question arises : how can we motivate local autonomous governments to collaborate each other and to jointly develop infrastructure for both uses, instead of independently building each one's own ? To answer this question, we need to set up an effective institutional scheme that will provide concerned local communities with enough incentives to work together through a self-induced collaborative mechanism.From the above-stated viewpoint, we highlight on "a game theoretic approach" as well as its related economic modeling approach and closely formalize what is called "cost allocation and cost sharing" in joint infrastructure development Both theoretical and practical questions are discussed by th … More e cross-disciplinary research team formed as follows :1. Literature review of the state of the art in related research fields and setting up an overall research perspective :1) basic conditions for self-formation of collaborative relations among multiple agents (by N. Okada, A. Okada, Kobayashi and Tatano)2) theory on cost allocation rules and self-induced coalition formation of networks (by N. Okada, Mun, Kobayashi and Fukuyama)3) method of cost allocation for water resources development under self -induced formation of networks (by Okada and Tatano)4) economic theory on self-induced supply of local public goods (by Sasaki, Fujita, Mun, Hideshima and Okumura)5) Development of transportation facilities and cost allocation shemes for autonomous communities (Mun and Okumura)2. Theoretical development of cost allocation methods and its institutional mechanism for a self-induced joint enterprise (by N. Okada, A.. Okada and Fukuyama)3. Theoretical development of a cost sharing scheme and examination of basic conditions for joint supply of an urban infrastructure by multiple autonomous communities (Sasaki, Kobayashi and Hideshima)4. Development of cost allocation methods in water resources management and examination of basis conditions for a joint enterprise (N. Okada and Tatano)5. Development of a cost sharing scheme for inter-regional transportation network systems (by Fujita, Mun and Okumura)The above results as of the end of FY 1999 are already documented in a form of a research report ("seika hokokusho"). Less