A METHOD FOR STRATEGIC DECISION MAKING IN A WATERSHED: GAME THEORY

Rapid growth of urban areas and their development problems in industrializing countries have had major impacts on the environment. Water, the main source of life on earth is under the threat of various types of pollution. These threats have been forceful in demonstrating the necessity of the management and planning of drainage basins. The importance of the evaluation of the total economic value of the water resources and aquatic ecosystems of drainage basins has not yet been accepted in the current planning system of Turkey. However, there are many actors and regulations about environmental issues and planning. Furthermore, these actors can make decision, independently. This situation causes conflicts among actors, so the situation calls for the organization of special drainage management institutions for drainage basins. The aim of this paper is to explore the use of game theoretic approach to analyze the strategic decisions of different interest groups (players) and develop a better understanding of the decision making process and its consequences on a drainage basin. We use the case of the Nilüfer Watershed from the north-western region of Turkey. The Nilüfer Watershed contains fertile agricultural lands and the third biggest industrial city (Bursa). In addition, a strategic plan prepared for Bursa Province, so we can evaluate some strategies with helping game theory, and application of the strategic decisions will also discuss. Key words: strategic decision making, game theory, sustainable development, water basin planning