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 language | English |
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Title of host publication | Proceedings - 2022 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022 |
Publisher | Institute of Electrical and Electronics Engineers Inc. |
Pages | 21-24 |
Number of pages | 4 |
ISBN (Electronic) | 9781665497794 |
DOIs | |
State | Published - 2022 |
Event | 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022 - Bern, Switzerland Duration: 21 Dec 2022 → 23 Dec 2022 |
Publication series
Name | Proceedings - 2022 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022 |
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Conference
Conference | 6th European Conference on Electrical Engineering and Computer Science, ELECS 2022 |
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Country/Territory | Switzerland |
City | Bern |
Period | 21/12/22 → 23/12/22 |
Bibliographical note
Publisher Copyright:© 2022 IEEE.
Keywords
- Differential games
- Economic growth
- Nash equilibria
- Numerical algorithms