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 - Publisher Copyright:
© 2015 Elsevier Ltd.
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
UR - http://www.scopus.com/inward/record.url?scp=84928680670&partnerID=8YFLogxK
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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 -