Best response dynamics in waste-to-energy plants' price setting problem
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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.
Keywordswaste management, waste-to-energy plant, gate fee, game theory, Nash equilibrium, best response
Document typePeer reviewed
Document versionFinal PDF
SourceIOP Conference Series: Materials Science and Engineering. 2021, vol. 1196, p. 1-8.