Using game theory to assess multi-company strategies in watershed management

Author(s)

Luke Ogilvie Thompson ^[1] ; Alexandre Bevilacqua Leoneti ^[2] ; René Bañares-Alcántara ^[3] ; Eduardo Cleto Pires ^[4]

Affiliation

^[1] University of Oxford. Engineering Science Department - Reino Unido

^[2] Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto. Departamento de Administração - Brasil

^[3] University of Oxford. Engineering Science Department - Reino Unido

^[4] Escola de Engenharia de São Carlos. Departamento de Engenharia - Brasil

• Document type: Journal article
• Source: Rev. Ambient. Água; v. 11, n. 3, p. 535-547, 2016-09-00.

Abstract

Abstract The main objective of this work was to evaluate the use of game theory as a strategic tool for watershed management decision-making. An engineering problem case study was used in which three organizations compare various scenarios when deciding where to locate a polluting plant on a watershed. Six games were modeled to provide a variety of conditions that could feasibly be implemented and were simulated using software for finding Nash Equilibria solutions. The results show that game theory can provide key insights, such as the consideration of other players' strategies, and identify possible pitfalls that may occur when the companies seek only to maximize their individual profitability. (AU)

• FAPESP's process: 13/06807-3 - Bio-energy production using vinasse processing: reactor evaluation
• Grantee: Eduardo Cleto Pires
• Support Opportunities: Research Grants - Visiting Researcher Grant - International
• FAPESP's process: 09/07598-3 - Multicriterial method based on indexes of sustainable to aid in the choice of treatment systems for sewage
• Grantee: Alexandre Bevilacqua Leoneti
• Support Opportunities: Scholarships in Brazil - Doctorate