Game Analysis of Virtual Water Trade under the Perspective of International Trade
As the global water resource is becoming more and more serious,a new way of solving the water resources problems with the idea of virtual water trade gains attention gradually.Using the prisoner’s dilemma in game theory model,analyzes the water resource game and international trade respectively.Combines the water resource and its security with the international trade,then build the game model of virtual water trade.Through analysis of these three games,find the water resources and the international trade game have equilibrium differences and complementarities returns,the implementation of virtual water trade will make both parties achieve even greater gains in terms of cooperation, increasing the possibility of breaking the prisoner's dilemma. Therefore,combine the water resources with the international trade will ensure a country’s water security in a larger extent and avoid producing high transfer cost and ecological destruction.