Application of game theory for the optimal groundwater extraction in Firozabad plain

Water scarcity problem due to insufficient rainfall in majority of Iran provinces such as Fars is very important. The other factor that makes the water scarcity problem more intensive is overexploitation of groundwater. In this study, game theory was applied to determine the optimal groundwater exploitation and resources management in Firozabad plain. In order to achieve payoff matrix and extract the Pareto frontier for two conflict objectives (economics and environmental), the linear programming and aquifer overexploitation coefficient were used. Four conflict methods were applied to determinate the optimal groundwater extraction: non-symmetric Nash solution, non-symmetric Kalai-Smorodinsky solution, non-symmetric area monotonic solution and non-symmetric equal loss solution. A random sample of 128 farmers was selected from Firozabad County in 2007-2008. Results show that when environment and economics objectives are assigned equal important, the optimal groundwater withdrawals is 162/79 million m3 in 2007-2008.