Water cuts are a way of life in Mumbai. Each year that the met department predicts a normal monsoon, we have water shortages. And BMC cuts or limits supply of water. A water cut has been implemented in our area as well.
The society has given the residents an option of limited timings of water supply or private water tankers. The latter options costs money. And the residents of the society have voted for that option.
So an important question to be asked is how should the payment be distributed? Should it be a flat amount for all flats or should it vary according to the number of residents in each flat? The justification of the latter option is a no-brainer. Larger families are likely to use more water than a family of two individuals.
Now comes the interesting game theory aspect into this problem. People with larger families would oppose the proportionate fee structure while smaller families would oppose a flat fee structure. In each case one of the parties would feel that they have been given a raw deal.
Now assume that the flat fee structure is adopted. This means that the smaller families will be disgruntled since they are paying a per capita higher rate than the larger families. Thus they will indulge in wasteful water usage to compensate for the higher fee. The larger families will use at least an amount minimum to their needs. However its more likely that they would be a little careless in using water as they are being subsidised by the smaller families. Overall this leads to wasteful water usage for the entire society.
Now let’s assume that the variable fee structure is imposed based on the number of residents in each flat. Here the reverse would happen. The larger families would be disgruntled and would spend water in a wasteful manner while the smaller families would use at least the minimum share of the water. Overall this option too leads to a wasteful usage of water.
Both these options seem to result in wastage of water. So what then is the optimal distribution of payment? Is there a better way of distributing water? The best option which comes to my mind is to implement a water meter system which tracks the actual usage of water (which may be of course more cumbersome and expensive to implement)
Let’s see what the society management comes up with. Till then out with the buckets and drums to store all the water.
Posted from my mobile: Please excuse grammar and typos.
UPDATE: Well, my society decided not to get into the nitty-gritties of Game Theory and adopted the first option instead! Limited water supply from now on. So much for trying to explain Game Theory to them.
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Small
Flat Variable
Large Flat Both Waste X
Variable X Both Save
If there is a monitoring system then the grid above would produce a result “Both Save” under a variable fee system. That would be the best option for all families and well as other residents of Mumbai.
But there is one point to think here. If say your society calls for 3 tankers @ 1000 per tanker/day and there are 200 residents = 3000/200 = 15Rs per person per day. But there is no way any family can ensure that they consume only that much per capita water.
Eg:- some guy can get up early at 6 and wash all vessels and do washing and have bath multiple times and leave less water for everybody and also get away scot free. Paying per capita does not equal consumption per capita as in a society no one can actually track water usage of anyone else.
Best Solution to the above:- Get all residents to gather on the terrace and sing “Raag Malhar” to end the crisis swiftly. There are too many people wasting too much time on this issue.
Don’t think the singing skills of the society members will bring even a drop of water. And they’ve done away with getting into details of game theory and instead chosen to supply limited water to everyone!
Water meters, the way its done in the west. People learn to value natural resources only when they are being billed. Unfortunately, most things that come for free aren’t valued enough!!