Use of the Cooperative Game Model for Water Rights Trade

Based on the market characteristics of water rights trade in China, the bidding strategies and benefit functions of both trade sides under the water rights quasi-market are proposed, then the cooperative game model for water rights trade is established, and the Nash bargaining solution of the model is given. In order to illustrate the model, a cooperative game model for water trade between industry and agriculture is developed in Dalian. The results show that water rights trade of inter-industry can bring great economic benefits. Finally, the parameters sensitivity and their influences on the trade decision-making are analyzed.