TY - JOUR
T1 - Infrastructure deployment under uncertainties and competition
T2 - The biofuel industry case
AU - Wang, Xin
AU - Lim, Michael K.
AU - Ouyang, Yanfeng
N1 - This research was supported in part by the U.S. National Science Foundation through Grants EFRI-RESIN #0835982 , CMMI #1234085 and CMMI #0748067 . The first author was also partially supported by a Clean Energy Education Fellowship from the University of Illinois at Urbana-Champaign. The data for the Midwest case were prepared with help from Prof. Seungmo Kang (Korea University), and Mr. Ziyong Yang (University of Illinois). The authors gratefully acknowledge the valuable comments and suggestions from the editor and three anonymous reviewers.
PY - 2015/8/1
Y1 - 2015/8/1
N2 - Technological paradigm shifts often come with a newly emerging industry that seeks a viable infrastructure deployment plan to compete against established competitors. Such phenomenon has been repeatedly seen in the field of transportation systems, such as those related to the booming bioenergy production, among others. We develop a game-theoretic modeling framework using a continuum approximation scheme to address the impacts of competition on the optimal infrastructure deployment. Furthermore, we extend the model to incorporate uncertainties in supply/demand and the risk of facility disruptions. Analytical properties of the optimal infrastructure system are obtained, based on which fast numerical solution algorithms are developed. Several hypothetical problem instances are used to illustrate the effectiveness of the proposed algorithms and to quantify the impacts of various system parameters. A large-scale biofuel industry case study for the U.S. Midwest is conducted to obtain additional managerial insights.
AB - Technological paradigm shifts often come with a newly emerging industry that seeks a viable infrastructure deployment plan to compete against established competitors. Such phenomenon has been repeatedly seen in the field of transportation systems, such as those related to the booming bioenergy production, among others. We develop a game-theoretic modeling framework using a continuum approximation scheme to address the impacts of competition on the optimal infrastructure deployment. Furthermore, we extend the model to incorporate uncertainties in supply/demand and the risk of facility disruptions. Analytical properties of the optimal infrastructure system are obtained, based on which fast numerical solution algorithms are developed. Several hypothetical problem instances are used to illustrate the effectiveness of the proposed algorithms and to quantify the impacts of various system parameters. A large-scale biofuel industry case study for the U.S. Midwest is conducted to obtain additional managerial insights.
KW - Biofuel infrastructure deployment
KW - Continuum approximation
KW - Facility disruption
KW - Stackelberg-Nash competition
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U2 - 10.1016/j.trb.2015.03.010
DO - 10.1016/j.trb.2015.03.010
M3 - Article
AN - SCOPUS:84928680670
SN - 0191-2615
VL - 78
SP - 1
EP - 15
JO - Transportation Research Part B: Methodological
JF - Transportation Research Part B: Methodological
ER -