EconPapers    
Economics at your fingertips  
 

A differential oligopoly game for optimal production planning and water savings

Baogui Xin () and Minghe Sun

European Journal of Operational Research, 2018, vol. 269, issue 1, 206-217

Abstract: A production planning single-decision problem is extended to a production planning and water saving dual-decision problem. A differential oligopoly game in which product prices are sticky and water right trading occurs is used to study this problem. Unlike previous studies appeared in the literature, the decisions in this study are affected simultaneously by both the product and the water right prices. Static, open-loop, closed-loop and feedback equilibria are analyzed to show optimal production plans and water saving decisions. The impact of oligopoly competition on the social welfare is finally analyzed. Different optimal solutions as the values of the parameters change are also simulated numerically. The results show that the firms’ optimal production plans and water saving decisions are strongly influenced by the water efficiency, initial water right allocations and water right reservation prices.

Keywords: Game theory; Differential game; Oligopoly competition; Water use efficiency; Water rights (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221717306434
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:269:y:2018:i:1:p:206-217

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-09
Handle: RePEc:eee:ejores:v:269:y:2018:i:1:p:206-217