Game Theory Analysis of Agricultural Land Fragmentation in Thailand

Abstract

Agricultural land fragmentation (ALF) is a common issue in rural areas in developing countries, impacting agricultural productivity and future food security. Thailand is one of the countries having an ALF problem. To analyze this problem, we use a game theory model having two players: landowners (L) and the government (G). Landowners have two strategies: fragment (F) and non-fragment (N) while the government has two strategies: encouragement (E) and implementation of punishment (I). In this model, we determine four variables that affect the landowners' decision-making: the expected value of fragmented land (VF), the expected value of non fragmented land (VN), the implement punishment value associated with land fragmentation (IV), and the encourage value of maintaining non-fragmented land (EV). We find that in an ideal model suggests landowners often choose N; however, real data indicates that landowners prefer F over N. We also determine all possibilities of the ALF problem. To address this problem, the government should increase IV and EV or decrease VF – VN, but both scenarios seem quite hard in Thailand.