Authors

• Rahim Goodarzi ¹
• Masode Homaionyfar ²

¹ PhD Candiate in Economic, Zabol University

² Assistant Professor, University of Zabol

Abstract

The purpose of this paper is twofold. The first aim is to illustrate the relationship between game theory and linear programming. The other aim is to apply game theory to field crops. We have used the main field crops (wheat, barley, paddy, maize, chickpea, lentil ,cotton and potato) in Province of Fars. The data included time series of gross product values of the investigated crops for the period 1362-1382. The Wald decision-making criterion was applied to the game theory model to determine the highest income under the worst conditions. The results of the model indicate that potato and paddy were the most risky crops for the the period of study. As potato and paddy provide the highest expected income under the worst conditions these crops enter the optimum plan. Furthermore, these two crops have the highest variation coefficients compared to the other crops.  It is concluded that the game theory model can be used to select alternative management strategies.

Keywords

• Game Theory
• Linear Programming
• Risk
• field crops