Game Theory and its Application on Optimal Allocation of Water Resources

Water as a vital element has been a rout of political, national and international challenges for years due to its unequal supply and geographical distribution. A practical approach for optimal allocation of water resources in game theory through explanation and interpretation of current situation in...

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Main Authors: Ghahreman Abdoli, Tiam Mohajershojaee
Format: Article
Language:fas
Published: Center for Development Research and Foresight 2020-11-01
Series:پژوهش‌های برنامه و توسعه
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Online Access:https://www.journaldfrc.ir/article_109247_51e087d613d8f8d6b120d5f53207d1dd.pdf
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author Ghahreman Abdoli
Tiam Mohajershojaee
author_facet Ghahreman Abdoli
Tiam Mohajershojaee
author_sort Ghahreman Abdoli
collection DOAJ
description Water as a vital element has been a rout of political, national and international challenges for years due to its unequal supply and geographical distribution. A practical approach for optimal allocation of water resources in game theory through explanation and interpretation of current situation in a cooperative game framework and building up an efficient solution could be helpful. Since in the cooperative game, players can be aware of other players’ decisions and strategies clearly, game will be performed based on the profit sharing between players’ coalition and controversially there will be a competitive decision-making situation due to various coalitions between players. In this study, Atrak river drainage basin has been investigated. A cooperative game between beneficiaries has been introduced, their strategies have been explained and finally “Shapley Value” has been evaluated for each player and efficient scenario is assessed. Based on optimal allocation of water resources scenario in north east provinces, environmental improvement and national income increase will be expected. JEL Classification: C71, D47, Q01, Q25, Q50, Q51, Q52 Key Words: Environmental Economics, Water Crisis, Efficient Allocation of Water Resources, Cooperative Game, Shapley Value
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series پژوهش‌های برنامه و توسعه
spelling doaj-art-6d110bd7ee0344a7a0e3349356a4f5622025-08-20T03:18:18ZfasCenter for Development Research and Foresightپژوهش‌های برنامه و توسعه2645-74662717-03652020-11-011312316610.22034/pbr.2020.109247109247Game Theory and its Application on Optimal Allocation of Water ResourcesGhahreman Abdoli0Tiam Mohajershojaee1Faculty of Economics, University of TehranDepartment of Economics, International Campus of University of Tehran, Kish IslandWater as a vital element has been a rout of political, national and international challenges for years due to its unequal supply and geographical distribution. A practical approach for optimal allocation of water resources in game theory through explanation and interpretation of current situation in a cooperative game framework and building up an efficient solution could be helpful. Since in the cooperative game, players can be aware of other players’ decisions and strategies clearly, game will be performed based on the profit sharing between players’ coalition and controversially there will be a competitive decision-making situation due to various coalitions between players. In this study, Atrak river drainage basin has been investigated. A cooperative game between beneficiaries has been introduced, their strategies have been explained and finally “Shapley Value” has been evaluated for each player and efficient scenario is assessed. Based on optimal allocation of water resources scenario in north east provinces, environmental improvement and national income increase will be expected. JEL Classification: C71, D47, Q01, Q25, Q50, Q51, Q52 Key Words: Environmental Economics, Water Crisis, Efficient Allocation of Water Resources, Cooperative Game, Shapley Valuehttps://www.journaldfrc.ir/article_109247_51e087d613d8f8d6b120d5f53207d1dd.pdfenvironmental economicswater crisisefficient allocation of water resourcescooperative gameshapley value
spellingShingle Ghahreman Abdoli
Tiam Mohajershojaee
Game Theory and its Application on Optimal Allocation of Water Resources
پژوهش‌های برنامه و توسعه
environmental economics
water crisis
efficient allocation of water resources
cooperative game
shapley value
title Game Theory and its Application on Optimal Allocation of Water Resources
title_full Game Theory and its Application on Optimal Allocation of Water Resources
title_fullStr Game Theory and its Application on Optimal Allocation of Water Resources
title_full_unstemmed Game Theory and its Application on Optimal Allocation of Water Resources
title_short Game Theory and its Application on Optimal Allocation of Water Resources
title_sort game theory and its application on optimal allocation of water resources
topic environmental economics
water crisis
efficient allocation of water resources
cooperative game
shapley value
url https://www.journaldfrc.ir/article_109247_51e087d613d8f8d6b120d5f53207d1dd.pdf
work_keys_str_mv AT ghahremanabdoli gametheoryanditsapplicationonoptimalallocationofwaterresources
AT tiammohajershojaee gametheoryanditsapplicationonoptimalallocationofwaterresources