Non-Collaborative Emission Targets Joining and Quantity Flow Decisions in a Stackelberg Setting

Abstract

This study considers a Stackelberg channel, where the leader determines the quantity flow along the channel. Both the leader and the follower have emission targets and the leader should respect those targets. In this setting, the leader and the follower can join their emission targets to lower costs while ensuring that the channel emissions do not exceed the cumulative target. The decisions for joining targets define a non-collaborative game between the leader and the follower. We characterize the equilibrium of this game. Furthermore, we analyze the effects of channel leadership. A manufacturer-retailer scenario is used to demonstrate the model.

Department(s)

Engineering Management and Systems Engineering

Research Center/Lab(s)

Intelligent Systems Center

Comments

This work is partially supported by the Interdisciplinary Intercampus research program of the University of Missouri System; and the National University Transportation Center and the Department of Engineering Management and Systems Engineering at the Missouri University of Science and Technology.

Keywords and Phrases

Emission control; Freight transport; Game theory; Leadership; Manufacturing; Retailing; Transportation planning; Emission target; Non-collaborative; Quantity flow; Stackelberg

International Standard Serial Number (ISSN)

1366-5545

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2017 Elsevier, All rights reserved.

Publication Date

01 Sep 2017

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