Using the game theory in optimal allocation of water in Zayandehrud

The purpose of this study is using game theory to evaluate the relationship between the five residential, agriculture, industry and mining, recreation and environment water demands in the Zayandehrud basin. In order to estimate the demand and supply functions, this study used system of simultaneous equations in the period 2001-2012. So the industry and mining and agricultural demand estimate with using a translog production function, the cost associated with it and using the second Taylor series expansion and the water cost share equation extracted in derivative with respect to the price of water and Shepard's lemma. The industry and mining demand Marginal price was estimated 12072.2 and 1698.442 Rials. Municipal water demand estimate as a nonlinear function by maximizing the Stone - Geary (Klean- Rubin) utility function restricted to family budget and the taking into account the minimum water requirement as a function of water temperature and population. The daily per capita minimum water requirement was estimated 101.91 Lit. The results of the above estimates under the two-play man and man (HH) and the game man and nature (HN) was evaluated in three states. The equilibrium estimate under the (HH) game, regardless of the demand for recreation and the environmental is for quantity 2696.74 mm3 and price 1932.37. In a wider game, by taking WTP of water and consumption requirement in recreation and the environmental sector in horizontal plural form the water market equilibrium between man and nature play is 2743.58 for quantity and 1973.64 for price. Finally, in the third case in the water market, by taking WTP of water and nonuse water in recreation sector in horizontal plural form and WTP of water and consumption requirement in the environmental sector in horizontal plural form the water market equilibrium between man and nature play is 2777.83 for quantity and 20004.715 for price.