Managerial Economics

Case Study 7
Due to the stakeholders' usually conflicting and inconsistent interests and opinions,
managing water resources could prove difficult. The distribution of water resources
between Bangladesh and India is one such example. This problem has harmed the
relations between these two countries for a period of years. Consider using game
theory as a strategy to solve this issue. Game theory and linear programming have
been used in this situation as modelling techniques to remove barriers and offer the
best solution to this urgent issue. According to the game model and Nash equilibrium,
the sixth scenario, in which Bangladesh presses through with their Dalia Project and
India shares 50% of the Teesta River's water, is the most favourable for both parties.
Bangladesh and India each make a profit of 2.59 million units in this instance. As a
result, it is the most trustworthy choice. The model's effects on the economy and the
environment, however, were ignored because of a lack of research. In the future, this
subject matter might be studied. In short, game theory is a highly useful tool for
resolving disputes over water resources since it not only provides a clear comparison
of the different water users but also benefits those who make decisions about the use
of water.
Teesta, which flows through both India and Bangladesh, is the fourth-largest
transboundary river after the Ganges, Brahmaputra, and Meghna (GBM) river
systems. The GBM's overall catchment area is 1.75 million square kilometres. The
Teesta begins in Sikkim, an Indian state, and has a total length of 414 km, of which
151 km are in Sikkim, 142 kilometres flow through Bengal, and 121 kilometres go
through Bangladesh.
sustain communication between the participating nations in order to ensure the best
possible teamwork in leveraging the advantages of shared river systems for both
nations. to plan flood control measures and suggest collaborative project
implementation. to create comprehensive ideas on cyclone warnings, flood
forecasting, and early flood alerts. to research flood protection and irrigation
initiatives so that the region's water resources can be used fairly for the benefit of the
populations of the 2 nations. to develop ideas for conducting joint research on the
flood management issue impacting both countries.
Mohammed Yaseen Qureshi
PES1202202920
SMBA ‘C’ Section