Multi-level programming and conflict resolution

We examine conflict resolution problems by postulating the existence of an arbitrator who acts as the leader in a Stackelberg game. We present models for different configurations of the resulting multi-level linear programs, and provide new algorithms for solving them. We 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.