Multi-level programming and conflict resolution

The authors examine conflict resolution problems by postulating the existence of an arbitrator who acts as the leader in a Stackelberg game. They present models for different configurations of the resulting multi-level linear programs, and provide new algorithms for solving them. The authors also examine the problems of coordinating such systems under informational decentralization. The models are illustrated with an application to a water conflict problem between India and Bangladesh which shows that both parties can gain by the arbitration of an international agency such as the United Nations.