A software based simulation for cleaner production: a game between manufacturers and government

Zhao, Rui; Neighbour, Gareth; McGuire, Michael and Deutz, Pauline (2012). A software based simulation for cleaner production: a game between manufacturers and government. Journal of Loss Prevention in the Process Industries, 26(1) pp. 59–67.

DOI: https://doi.org/10.1016/j.jlp.2012.09.006

Abstract

This paper shows how game theory could be applied to better assess the various strategies available to government and manufacturers to promote more environmentally friendly products through cleaner production by examining several different game scenarios . In order to demonstrate the problem situation of cleaner production more visually, the ‘Gambit’ software package is used to simulate the created game models conceived as “two person non-cooperative” games. The application of game theory is shown to provide a useful insight into strategic decision making by both government and manufacturers. The limitation of the game model and the associated analysis is also discussed, laying a foundation for further work.

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