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Mountainous roads where probability of land sliding exists, causes hurdles not only in the traffic flow but generate various traffic problems in the form of congestion, high accidents rate and wastage of time. The purpose of this paper is to minimize traffic congestion and wait time of the vehicles. Obstacle management is analyzed in Vehicular Adhoc Network and a mechanism is devised by using a cooperative game approach. Conflict between vehicles has been taken into consideration on one of the roads of mountainous area and two vehicles are considered to play the game. Possible actions, information set and strategies have been defined and payoffs are calculated. Finally, the outcome is achieved in the form of minimum time required for smooth flushing of the vehicles while fuzzy logic control has been used for simulation. It is found that by applying game theory in VANETs and fuzzy logic control for simulation, results can be achieved quite well in the form of minimizing traffic congestion and reduced wait time. The approach makes the traffic regularized not only in the mountainous areas but in urban and rural areas as well upon facing road hurdles. The involvement of Game Theory in VANETs makes it very useful approach in dealing with obstacle management.