Pooling problems under perfect and imperfect competition

Dimitri J. Papageorgiou; Stuart M. Harwood; Francisco Trespalacios

doi:10.1016/j.compchemeng.2022.108067

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arXiv · 2110.03018

Pooling problems under perfect and imperfect competition

Dimitri J. Papageorgiou·Stuart M. Harwood·Francisco Trespalacios

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Abstract

We investigate pooling problems in which multiple players vie with one another to maximize individual profit in a non-cooperative competitive market. This competitive setting is interesting and worthy of study because the majority of prevailing process systems engineering models largely overlook the non-cooperative strategies that exist in real-world markets. In this work, each player controls a processing network involving intermediate tanks (or pools) where raw materials are blended together before being further combined into final products. Each player then solves a pure or mixed-integer bilinear optimization problem whose profit is influenced by other players. We present several bilevel formulations and numerical results of a novel decomposition algorithm.

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BibTeX RIS

Dimitri J. Papageorgiou, Stuart M. Harwood, Francisco Trespalacios. 2021-10-06. Pooling problems under perfect and imperfect competition. https://doi.org/10.1016/j.compchemeng.2022.108067

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