Studies on the water trade price in the Market mechanism allocation of regional water resources

Water resources allocation based on water rights is approximately divided into two categories which include the centralized (administration) mechanism and the market mechanism. The market mechanism also is called the price mechanism. Applying the market mechanism to distribute regional water resources can be seen as a nonlinear game decision-making with complex structure. In the process of its decision-making, the water trade price is an extremely essential parameter which is difficultly determined. This work builds up the bi-level program model for water resources allocation based on water rights and calculates optimal water trade price. Finally, this paper includes an example to specially study determination of the water trade price in the Market mechanism allocation of regional water resources based on water rights.