A Game Theory Analysis of China's Agri-biomass-based Power Generation Supply Chain: A Co-opetition Strategy

Abstract

Abstract The purpose of this paper is to propose a co-opetition agri-biomass feedstock supply strategy for China's biomass-based power plants that the broker method and the villagers’ committee method co-exist. We use game theory and Monte Carlo simulation to study its efficiency, compared with that of the competition and cooperation strategies that there exists only the broker method or villagers’ method. Results show that the co-opetition strategy supplies sufficient agri-biomass for a plant's one year's operation, while the other two strategies could not. And the strategy brings highest profits for the plant and the entire agri-biomass supply chain, followed by the cooperation and the competition strategies. The sensitivity analysis is conducted with the recommendation proposed.