Application Of Game Theory In Water Resources Allocation

With the increase of population and the development of the society economy, water resources are exploited and utilized continuously. Because of the serious shortage of water resources, the conflicts between water supply and demand becomes more and more outstanding. How to allocate regional water resources reasonably, increase the water use efficiency and resolve the conflicts between each region, those problems need to be resolved urgently. Game theory, a good tool of resolving the conflicts, is applied in the management and allocation of water resources gradually. This paper studies the application of Game theory in water resources management and allocation.The paper summarizes the research progress of water resources allocation in china and abroad and the application of game theory in water resources field, as well as the problems of water resources allocation in existence. According to game theory, the paper builds up a conflict analysis model of basin water resources utilization to analyse self-benefit behaviors of each participating square in the different mode of water resources allocation and the results of different decisions, describe the properties, Characteristics and results of water resources conflicts.The paper use game analysis model to analyse and compute water resources allocation in each second class areas of Huaihe basin of two allocation patterns, including "with need to confirm providing" and "with apply to confirm need" patterns, and allocation of "with apply to confirm need" pattern in each province of Huaihe basin. Furthermore, the paper reveals limits of these two allocation patterns and analyses game water right trade under the macro control of market economy in each province of Huaihe basin.The paper shows that water resources allocation pattern based on macro control of market economy is a feasible and acceptable pattern. It can promote the development of water saving and new water resources and make people cooperate from noncooperation.