Abstract
The necessity and the possibility of the cooperation of the upper and lower reaches of river have been fairly recited for a long time. However, it is theoretically interesting that it just actually hears of the cheer, and the actual cooperation of the upper and lower reaches of river is not done too much actively. It is one mystery that it doesn't become the one of the reality though the possibility of mutually beneficial cooperation is suggested. Trying to analyze the interpretation by Schweizer (1988) of Coase that assumes this phenomenon for it to be able to solve the failure of the market by the externality by the voluntary negotiation as a string of the lead is the purpose of this paper. Schweizer describes the process of the voluntary negotiation with the frame of the non-cooperation game, treats the transaction cost as not the means of postulate and a kind of simplification but one components of the model, and clarifies the played role. In this paper, the meaning is made more comprehensible by materializing as an external economic model in the cooperation of the upper and lower reaches of river, and showing this in the figure, and the possibility of the cooperation of the upper and lower reaches of river is clarified. And, the policy implication cooperating what is necessary to be able to end is actually derived. This paper is organized into five sections. In section 2, an external economic model of the river basin is constructed, the allocation before the negotiation is described as a super-short-term situation, and the allocation that becomes the most efficient there is shown . In section 3, after the voluntary negotiation of Schweizer is introduced into this model, and the inducement to the optimal solution is drawn, the influence is clarified in consideration of the transaction cost and no equipping fully information. Section 4 examines should clarified the trouble that disturbs the achievement of the cooperation of the upper and lower reaches of river, how to do in the policy, and to get them over.
