A Game-Theoretic Analysis on Dividing the Limited Budget between Building Emergency Facilities and Preparing Resources

Given the limited budget, relevant emergency authorities first need to determine how to divide the budget between building emergency facilities (including the construction of facilities and the training of emergency teams) and preparing emergency resources (including various types of resources) when compiling plans. However, there exists a conflict between building emergency facilities and preparing emergency resources due to the limited budget. Therefore, the authority should have an effective method to split the budget between building facilities and preparing resources in order to maximize the recovery of losses. In this paper, a game theoretic method is proposed to address this problem. This paper proposes a mathematical framework to describe this problem in more detail. Then, it uses the evolutionary game theory to find the Nash equilibrium solution and describe how to effectively split the budget.