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Operations Research, Systems Engineering and Industrial Engineering Commons

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Series

Iowa State University

Sustainability

2013

Articles 1 - 1 of 1

Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering

Market Competition And Social Welfare Analysis For E10 And E85 With A 1 Game Theory Model, Minwen Yang, Guiping Hu Jan 2013

Market Competition And Social Welfare Analysis For E10 And E85 With A 1 Game Theory Model, Minwen Yang, Guiping Hu

Industrial and Manufacturing Systems Engineering Publications

With the increasing concerns about the petroleum reserve, and the global warming, people have been looking for renewable and environmental friendly energy sources to supplement and replace fossil fuels. Ethanol has been an appropriate substitute to fossil fuels. Currently, E10 and E85 are two of the main transportation fuels with ethanol and they are competing in the market. This study investigates the competition between E10 and E85 with an oligopoly Cournot model and derives three indicators from the equilibrium to measure the performance of the market: E85's market share, E85 price premium which indicate the consumers' additional willingness to ...