Open AccessBest response dynamics in waste-to-energy plants’ price setting problem
Author(s) -
Ivan Eryganov,
Radovan Šomplák,
Jaroslav Hrdina,
Vlastimír Nevrlý
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1196/1/012016
Subject(s) - nash equilibrium , work (physics) , waste to energy , task (project management) , computer science , price of anarchy , energy (signal processing) , production (economics) , waste management , mathematical optimization , municipal solid waste , economics , engineering , mathematics , microeconomics , price of stability , mechanical engineering , monetary policy , statistics , management , monetary economics
This paper deals with the task of waste energy recovery and effective price setting of waste-to-energy plants. Its main contribution is the invention of a new approach to pricing of waste disposal in a particular waste management network. This novel method, which is based on a problem of finding the Nash equilibrium, takes into account the amounts of waste production of cities, capacities of waste-to-energy plants and their locations. The best response dynamics algorithm enables the computation of Nash equilibrium for a game of waste-to-energy plants in a normal form with numerous players and multiple strategies in comparison with other standard algorithms. The algorithm is able to find the Nash equilibrium for a sufficiently big step size between possible gate fees. The results of this work are applicable in the forecasting of prices of waste-to-energy plants’ services for real waste management networks.