Honors Theses

Date of Award

Spring 5-9-2024

Document Type

Undergraduate Thesis

Department

Economics

First Advisor

John Conlon

Second Advisor

Kathryn Kidd

Third Advisor

Kyle Fritz

Relational Format

Dissertation/Thesis

Abstract

This thesis investigates the role of dams in bargaining and analyzes the current conflict between Egypt and Ethiopia over the Grand Ethiopian Renaissance Dam (GERD). Dams are analyzed using a strategic competitive market model. The model demonstrates the asymmetrical power balance between an upstream and downstream state. Ultimately, the model shows that the upstream state can reduce its quantity with relatively less lost potential than the downstream state’s benefits. Thus, upstream- downstream cooperation can generate positive net gains from trade. In the context of Egypt and Ethiopia, bargaining failures are certainly possible. However, a quota could increase the net gains of trade between the two states. The international community can play an essential role in helping Egypt and Ethiopia reach an agreement by incentivizing Ethiopia.

Creative Commons License

Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.

Available for download on Saturday, May 10, 2025

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