A two-stage dynamic game model for water resources optimal allocation

摘要

A two-stage dynamic game model for water resources optimal allocation was developed with the objective of maximizing the overall value of water resources. Water rights, public interests, water market and water price, which are determined by the dealers' decisions, are all taken into account. The solution, which satisfies both the administrator's resources allocation mandate and the consumers' objectives, is solved in the case of sub-game perfect Nash equilibrium,. An example is given to illustrate the idea, with the purpose of providing useful decision support for the modern management of water resources in China.