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Cooperative Game Model for Sustainable Development of Regional Economy and its Application

Optimization of regional industrial structure is an important matter for the macroeconomic administration. After analyzing the impact factors of regional industrial structure optimization , cooperative game theory is utilized to establish the optimization model of regional industrial structure in this paper. In the model, the players correspond to the different industries, strategies set to different combinations of industries and the utility function of each industry to the composite function of the proportion of added value , labor productivity and environmental pollution. So the problem of industrial structure optimization is transformed to solve the core of the cooperative game. Then Shapley value algorithm is introduced to seek out the core point. A numerial example for Guangxi is presented to demonstrate the feasibility and effectiveness of the model.