Groupe d’études et de recherche en analyse des décisions

G-2008-70

A Game-Theoretic Framework for Analyzing Biomass-based Electricity Generation

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This study proposes a game theoretic approach to model and analyze the process of utilizing biomass for power generation considering three players; distributor, facility developer, and participating farmer who has the choice of growing an alternative product, rather than biomass, to sell in an alternative market. We characterize the Nash equilibrium of the sequential game and discuss its features. A special attention is devoted to the analysis of the incentives that must be put forward to insure that in equilibrium, biomass is part of electricity production.

, 22 pages