Cooperative and Non-Cooperative Game Theory in Financial Accounting: Insights into Government Subsidies

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Cooperative and Non-Cooperative Game Theory in Financial Accounting: Insights into Government Subsidies

Abstract: To depict the dynamics between the two decision-makers in the research, two models are developed: one based on game theory and the other on cooperative dynamics. Russian water delivery networks as they stand right now, with a focus on the replacement of a large chunk to prevent disastrous repercussions. Government subsidies are used to build models of cooperative and non-cooperative games using an innovative approach to financial accounting. An investigation of the Volga River Water Diversion Project in the southwest of the country is conducted to demonstrate the effectiveness of the concept. The Volga River has ongoing challenges in its ability to purify itself and provide potable water as a result of pollution and diminishing resources, similar to other significant rivers in Europe. Currently, national goal programs are being put in place to guarantee the fast development of certain regions within the Russian Federation. These programs seek to provide the best possible environment for investment to flow into different areas of regional development. In theory, the Shapley value is defined by characteristics with appealing real-world implications; hence, its application in practical settings is easily justified. The Shapley value is an important solution idea in voting games in general, and optimal water supply and income rose in tandem with the number of subsidies, while water work costs fell.

Keywords: Shapley’s value, non-cooperative and cooperative games Supply chain of water, Volga River Water Diversion Project

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