Application of cooperative game theory in a spatial context: An example of the application of the community-led local development instrument for the decision support system of biogas plants construction

Authors:

• Robert Olszewski,
• Piotr Pałka,
• Agnieszka Wendland,
• Majdzińska Karolina

Abstract

The aim of the article is to develop a methodology for the creating decision support system by the integration of spatial, demographic and economic data and their processing with the use of game theory and spatial information modeling methods. The article proposes a novelty method for applying the mathematical theory of cooperative games to analyze the use of different types of public policy and shows which one is most profitable locally for a modern smart city and its three main stakeholders: Authorities, Business, and Citizens. The developed method supports effective cooperation in the “ABC triangle” – with EU funds reasonably. The research conducted on the illustrative construction of a local biogas plant in the commune of Z˙ uromin showed the economic and social potential of the proposed model. Without loss of generality of the solution, the model may be used to support decision-making systems in the context of EU Policy Objective 5the thematically and spatially diverse CLLD instruments (Community-led Local Development, in regional development as well as the creation of smart cities and communities). According to our newest information within the commune of Z˙ uromin, they are going to build two biogas plants. This situation is compliant with our findings.