The application of game theory in capacity investment planning.

• Other Authors: Jan, Ting-Wai.
• Format: Others
• Language: English
• Published: 1998
• Subjects: Gases industry > Industrial capacity; Game theory; Duopolies > Mathematical models
• Online Access: http://library.cuhk.edu.hk/record=b5889400; http://repository.lib.cuhk.edu.hk/en/item/cuhk-322089

by Jan, Ting-Wai and Ng, To-Tung. === Thesis (M.B.A.)--Chinese University of Hong Kong, 1998. === Includes bibliographical references (leaves 66-67). === ABSTRACT --- p.i === TABLE OF CONTENTS --- p.ii === LIST OF FIGURES --- p.iv === LIST OF TABLES --- p.v === CHAPTER === Chapter I --- INTRODUCTION --- p.1 === Objective --- p.1 === The Industrial Gases Industry --- p.1 === The Products --- p.2 === Competition within an Industrial Park --- p.3 === A SCENARIO IN THE INDUSTRY --- p.3 === Chapter II --- DESIGN OF THE GAME --- p.4 === The Environment --- p.4 === The Time Line --- p.5 === The Game in Extensive Form --- p.7 === Chapter III --- EVALUATION OF THE EXPECTED PAYOFFS --- p.10 === Payoff criterion: Net Present Value Vs Internal Rate of Return --- p.10 === Calculation of Payoffs at End Nodes --- p.12 === Cash Flow Assumptions --- p.13 === The Product Selling Price --- p.13 === Utilities Consumption in Relation to Plant Utilization --- p.14 === Chapter IV --- ANALYSIS OF THE GAME --- p.16 === The First Iteration --- p.16 === The Right Side of the Tree --- p.17 === The Left Side of the Tree --- p.18 === Payoffs of Portion A (Investment Options) --- p.19 === If Firm F2 sells at Year -1 --- p.20 === Is It a Fair Deal for Firm F1 at Node 4? --- p.21 === Can Firm F2 Increase Its Payoff at Year -1 ? --- p.22 === Determine a New Product Selling Price Between Firms F1 and F2 --- p.24 === Revised Expected Payoffs for Nodes 6 to 9 at Year-1 --- p.25 === The second Iteration (Final Outcome) --- p.27 === Risk if Firms Make Irrational Decisions --- p.27 === Chapter V --- INDUSTRY PRACTICE IN LONG TERM CAPACITY PLANNING --- p.29 === The Decision Tree of Firm F1 --- p.29 === The Decision Tree of Firm F2 --- p.30 === The Implications of Making Decisions Based on Individual Decision Trees --- p.31 === By Firm F1 and F2 --- p.31 === Chapter VI --- CONCLUSION --- p.33 === APPENDIX A SUMMARY OF ASSUMPTIONS IN CASH FLOW --- p.34 === APPENDIX B SUMMARY OF CASH FLOW FOR VARIOUS PAYOFFS AT FIRST ITERATION --- p.35 === APPENDIX C SUMMARY OF CASH FLOW FOR VARIOUS PAYOFFS FOR FINAL OUTCOME --- p.55 === BIBLIOGRAPHY --- p.66