Journal of Economic Modeling Research

The unavoidable consequences of increased demand and decreasing water resources and Deduction rainfall and drought is caused to arise disutes among water user in recent years.

On the other hand, vital need of agriculture sector to water and developing industry sector in Isfahan, have increased competition between water users of industry sector and agriculture sector. In this paper, we use game theory for optimal allocation water resources zayande rud basin. Amount of optimal allocation from zayande rud basin determine by using optimal pareto curve and four conflict solutions For each of sector with enivironment and for game two persons between mentioned sectors over 1379-1388 years. in three games ''industy sector and environment'' and ''agriculture sector and environment'' and ''agriculture sector and industry sector'' find out that allocation water resources isn't optimal between mentioned sectors over 1379-1388 years. After deduction of drinking water, the resulting of game two persons between agriculture and industry sector is share of industry and share of agriculture sector is 85.82% and 14.18%, ,respectively in order to maximize total benefit Isfahan. on the other hand, estimation economic value of water in two sector determine water price in Agricultural sector 13010 rials per M³ and in Industry sector 6001.95 rials per M³ by application linear programming and residual imputation approach. According to the large difference between the actual price of water and tariff set by Ministry of Power for agriculture sector and the results of game theory, it is proposed that give more value to the industry sector, Because it consume less water than agriculture and we use innovative methods for irigation in agriculture sector, so that we prevent from wastage of water resources in this sector.