Game Theory Applied to Smart Village

Abstract

Based on the systematic review of the state of the art related to game theory, it is possible to distinguish between non-cooperative and cooperative games. Non-cooperative games try to model competitive behavior, while cooperative games are dedicated to studying multiplayer cooperation. The present study deals with the production of intelligent villages, taking as studies the bases of the Intelligent electrical networks applied in a rural district of Ecuador known as San Joaquín. As with electrical grids, if distributed generation is equivalent to the individualized production of producers, then the losses increase. Hence, the main objective of this study is to propose a mathematical model applying cooperative game theory so that they work as an association, managing to reduce losses and improve their productivity. To obtain the data of the geographic location variable, a GPS is used, and the data is transformed to UTM; for the supply–demand values, a survey is carried out, and for the threshold distance, it is calculated using the Weber method. The cooperative game theory model with transferable utility was applied to the 76 agricultural producers, considering the value of their products constant for the simulation. The results showed that eight associations should be created, which would improve productivity by 6.42%.