| Along with the development of social economy, the urbanization advancement of our country speeds up unceasingly, leading to increasingly tight constraints of resources. As the material basis of human survival, the scarcity of water resource aggravated. Resource crisis has become a bottleneck restricting sustainable development. How to consider the interaction between the government and the market and how to solve the conflict of interests among water users in the process of water resource allocation has become a very urgent problem. Based on existing research, this paper combines the analysis of government and market, and then studied the optimal allocation of water resources from the perspective of game theory, the main tasks are as follows.First of all, System Theory, Environmental Economics and Game Theory were introduced. Based on the analysis of water resource characteristics, the water rights research is carried out.Secondly, the situation of water resource allocation method is presented, and on this basis, the role of government and market in the allocation of water resource, as well as the relationship between the two is analyzed.And then, the game model of water resource optimal allocation under the combination of government and market is put forward. And the model of the non cooperative game is expanding to the cooperative game, from Nash equilibrium to Shapley value.Finally, take Tianjin as an example to construct the optimal allocation model of water resource under the influence of government and market. Based on the year of 2013, the water rights of the four regions are distributed, and then the optimal allocation of water resource in Tianjin is work out.The result shows that study of optimized allocation of water resource under the combination of government and market provides a feasible method for solving the conflict of interests among water users. And the research on the game equilibrium can provide a scientific basis for formulating strategies.
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