Application of Game Theory, In Order to Conciliate Urmia Lake Basin Water Conflict

Several researches have been performed to investigate reasons of Urmia Lake dry out and solutions to stop Lake Shrinkage. In this research, by means of game theory and establishing five different scenarios, the Urmia Lake Conflict, has been discussed. Therefore, income of agriculture sector and water which is discharged to lake, are introduced as two players. In this non-cooperative game, the basin consumers sector was not allowed to consume more than 100% of Natural Renewable Water Resources and at least 3.5 billion cubic meters of water was allocated to Lake. Moreover, another hypothesis was that Agricultural Income should not be less than current amount. Based on above limitations, compared to other scenarios, the 4th scenario, in which, irrigated cropping pattern was completely prohibited and all orchards were irrigated using drip irrigation, presented the most desirable results. In the equilibrium, which was located at 4th scenario, Agricultural, Domestic and Industry sectors, consumed 26.78% of natural renewable water and 4235 mcm of water was allocated to Lake. Moreover, the agricultural income in this equilibrium was increased by 19% compared to current situation. At the equilibrium, as a consequence of crop irrigation prohibition, current costs diminished and therefore it might be in interest of farmers more than other scenarios.