Game theory approach for decision making in watershed management

The aim of this research was to study the interaction between two groups of decision makers or players in Zemkan basin, located in the west of Iran. The interaction was between environmental and economical players. Hence, game theory as a strategic tool for decision making is applied in this research. The objectives of environmental player was minimizing the destructive effects on the environment and in contrast, the objective of the economical player was maximizing the incomes resulted from different land uses. Nash bargaining solution was determined. The results show that game theory can provide sustainable land use planning in situation of multi objective decision making.