“Evolutionary Variational Inequality Formulation of

Department of Economics and Management
University of Brescia
SEMINAR
“Nash Equilibrium and Optimal
design/management of
Industrial Ecoparks”
Prof. Didier Aussel
Université de Perpignan
Chair: Prof. Rossana Riccardi
February 10th, 2016 h. 12.00
Room D2, Brixia building
The design and optimization of industrial water networks in eco-industrial parks (EIP) is studied by
formulating and solving multi-leader-follower game (MLFG) problems. First, the methodology is
explained and justified by demonstrating its advantages against common multiobjective optimization
(MOO) approaches. Moreover, the several formulations and solution methods for MLFG are
discussed in detail. The approach is validated on a published example of water integration in EIP
involving only one contaminant. Two general scenarios are then studied, involving three different
enterprises within the EIP: without water regeneration units and with regeneration units, where
regeneration units can be chosen with three different regeneration capacities. In the latter, both
multi-leader single-follower (MLSFG) and single-leader-multi-follower (SLMFG) games are studied.
Each enterprise objective is to minimize the total annualized cost, while the EIP authority objective is
to minimize the total consumption of fresh water within the ecopark. The MLFG is then transformed
into MOPEC (Multiple Optimization Problems with Equilibrium Constraints) and solved using GAMS
as a NCP (Non-linear Complementarity Problem) or a NLP (Non-linear Programming) problem.
Results obtained are compared against the classical MOO approach and moreover, between
different methodologies of MLFG formulations. The methodology proposed is demonstrated to be
very reliable in multi-criteria scenarios compared to MOO approaches, by providing numerical Nash
equilibrium solutions and specifically in EIP design and optimization.
Via S. Faustino 74/b, 25122 Brescia – Italy
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email: [email protected]