Supply Chain Infrastructure Co-investments: Locating A Balanced Growth Path

Konstantin Kogan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Infrastructure investments are critical to support economic growth and sustain development. We consider a supply chain comprised of several firms operating under a common infrastructure and cooperating in infrastructure fund management and investment. We assume that the firms' capital represents the supply chain infrastructure and that the firms' goals are to choose employment and co-investment levels that maximize their long-run discounted profits. The problem is formulated as a differential game between the supply chain parties and the focus is on commitment Nash equilibria. Specifically, we derive the conditions under which a long-run path of balanced growth of infrastructure capital exists and determine the rate of growth. Furthermore, based on those results, we propose an efficient numerical algorithm for locating transient equilibrium co-investment trajectories that tend toward balanced growth of infrastructure capital and employment.

Original languageEnglish
Title of host publicationProceedings - 2022 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages21-24
Number of pages4
ISBN (Electronic)9781665497794
DOIs
StatePublished - 2022
Event6th European Conference on Electrical Engineering and Computer Science, ELECS 2022 - Bern, Switzerland
Duration: 21 Dec 202223 Dec 2022

Publication series

NameProceedings - 2022 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022

Conference

Conference6th European Conference on Electrical Engineering and Computer Science, ELECS 2022
Country/TerritorySwitzerland
CityBern
Period21/12/2223/12/22

Bibliographical note

Publisher Copyright:
© 2022 IEEE.

Keywords

  • Differential games
  • Economic growth
  • Nash equilibria
  • Numerical algorithms

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