Abstract:
This paper introduces the reader to the concept of game theory and illustrates how it can be
efficiently applied to optimize the allocation of water resources in multipurpose reservoirs. First part of the
paper discusses the fact that life is full of conflicts, and these conflicts can be modelled as games. The
second part discusses the mathematical modelling of a game. The basic characteristic of a game is that
each player has a set of strategies and players do not know what strategy the other players are going to
use. However, payoff to each player depends not only what he or she does, but also on the strategies
chosen by other players. Final section of the paper develops a multipurpose reservoir operation as a
game. In this game the two players are the reservoir operator and nature. Objective of the model is to
optimize the benefit to the reservoir operator irrespective of what nature does
