Perfectly competitive capacity expansion games with risk-averse participants

Dane A. Schiro (), Benjamin F. Hobbs () and Jong-Shi Pang ()
Additional contact information
Dane A. Schiro: University of Illinois at Urbana-Champaign
Benjamin F. Hobbs: The Johns Hopkins University
Jong-Shi Pang: University of Illinois at Urbana-Champaign

Computational Optimization and Applications, 2016, vol. 65, issue 2, No 10, 539 pages

Abstract: Abstract This paper presents Nash equilibrium models of perfectly competitive capacity expansion involving risk-averse participants in the presence of state uncertainty and pricing mechanisms. Existence of solutions to such models is established based on the nonlinear complementarity formulations of the models to which a general existence result is applicable. This study extends two recent papers (Fan et al. in J Environ Econ Manag 60:193–208, 2010; Zhao et al. in Oper Res 58:529–548, 2010) pertaining to special cases of our models, complements the extensive work on games with strategic players, and provides an extended treatment of games with price-taking players whose feasible sets may be unbounded. The latter aspect generalizes much of the classical analysis of such models for which price boundedness and feasible region compactness are essential assumptions needed for a fixed-point existence proof.

Keywords: Competitive capacity expansion models; Complementarity problems; Existence of solution (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10589-015-9798-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:coopap:v:65:y:2016:i:2:d:10.1007_s10589-015-9798-5

Ordering information: This journal article can be ordered from
http://www.springer.com/math/journal/10589

DOI: 10.1007/s10589-015-9798-5

Access Statistics for this article

Computational Optimization and Applications is currently edited by William W. Hager

More articles in Computational Optimization and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().