River flooding risk prevention: A cooperative game theory approach

Socio-economic development combined with changing hydrological factors represents a challenge for extending flood protection. In particular, land owners should be encouraged to use their land in a way that improves its water retention capacity. However, problems of fairness may arise because a landowner can benefit or lose out depending on the use of other lands. This paper sets out to study the possibility of applying game theory through a cooperative game to solve this problem. Specifically, we look for a sharing rule function to help the planners to distribute the total benefit among landowners, taking into account a principle of stability. We concentrate on enhancing upstream water retention and focus on the role played by forests as natural water retention features. This is a methodological contribution that analyzes land use management for flood retention. Land planners, governments and landowners could use cooperative games as a flood risk management tool. With this method, compensations and benefits could be established to raise awareness and encourage land owners to cooperate.