Regional industrial structure optimization model for the cooperative game

Optimization of regional industrial structure is an in important matter for the macroeconomic. Affter analyzing the impact factors of regional industrial structure optimization, cooperative game theory is utilized to establish the optimization model of regional industrial in this paper. In the end, 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. Then Shapley value algorithm is introduced to seek out the core point. A numerial example for Kunming is presented to demonstrate the feasibility and effetiveness of the model.