IDEAS home Printed from https://ideas.repec.org/p/ags/aaae10/95978.html
   My bibliography  Save this paper

Explaining Investment Decisions in the South African Biofuels Industry: A Game Theoretic Approach

Author

Listed:
  • Funke, Thomas
  • Klein, Peter G.

Abstract

The production of biofuels and the establishment of a biofuels industry in South Africa have largely been hampered by the structure, procedures and requirements as set out in the Industrial Biofuel Strategy. This article sketches the industry by means of a game theoretic representation. A model is developed that represents the rational strategies of various role players in the industry with respect to investor decision making. In reality this did not occur and the article develops and documents a variable, σ, which in turn helps to represent the current state of affairs. The study explains why current investment decisions in the industry have been made and why certain role players remain indifferent towards any commitment.

Suggested Citation

  • Funke, Thomas & Klein, Peter G., 2010. "Explaining Investment Decisions in the South African Biofuels Industry: A Game Theoretic Approach," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95978, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:95978
    DOI: 10.22004/ag.econ.95978
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/95978/files/87.%20Game%20Theory%20and%20investment%20decisions%20RSA.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.95978?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meyer, Ferdinand H. & Strauss, P.G. & Funke, Thomas, 2008. "Modelling the impacts of macro-economic variables on the South African biofuels industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-19, September.
    2. Mikhael Shor, 2003. "Game Theory .net," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(4), pages 388-388, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sokolovskyi, Dmytro & Sokolovska, Olena, 2013. "The problem of arising the Pareto inefficient norm in relations “investor – government” type," MPRA Paper 44745, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Strydom, D.B. & Taljaard, P.R. & Willemse, B.J. & Meyer, F. & Strauss, P.G., 2009. "PR - The Economic Impact Of Ethanol Production On The South African Animal Feed Industry," 17th Congress, Illinois State University, USA, July 19-24, 2009 345527, International Farm Management Association.
    2. Franziska Schuenemann & William A. Kerr, 2019. "European Union non-tariff barriers to imports of African biofuels," Agrekon, Taylor & Francis Journals, vol. 58(4), pages 407-425, October.
    3. Rach, Sabine & Tschöpel, Michael, 2011. "Handelsplattformen im Internet: Eine Literaturstudie zur empirischen Evidenz," Arbeitspapiere 112, University of Münster, Institute for Cooperatives.
    4. Špačková Zuzana & Špaček David, 2020. "Using Game Theory in Public Domains: The Potential and Limitations of Security Games," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 13(2), pages 249-272, December.
    5. Zhou, Tim, 2015. "Failed bank auctions and externalities," MPRA Paper 65587, University Library of Munich, Germany.
    6. Shan Wang & Shi Zheng & Lida Xu & Dezheng Li & Huan Meng, 2008. "A literature review of electronic marketplace research: Themes, theories and an integrative framework," Information Systems Frontiers, Springer, vol. 10(5), pages 555-571, November.
    7. Bryan Randolph Bruns, 2015. "Names for Games: Locating 2 × 2 Games," Games, MDPI, vol. 6(4), pages 1-26, October.
    8. Jordan Jeremy D & Melouk Sharif H & Perry Marcus B, 2009. "Optimizing Football Game Play Calling," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(2), pages 1-34, May.
    9. Sparks, G.D. & Ortmann, G.F., 2011. "Global biofuel policies: A review," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 50(2), September.
    10. Mertins Vanessa & Albert Max, 2015. "Does Participation Increase Outcome Acceptance? Evidence from a Power-to-take Experiment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(6), pages 584-607, December.
    11. Sparks, G.D. & Ortmann, Gerald F. & Lagrange, L., 2010. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in the Soybean-Producing Regions of KwaZulu-Natal: Some Preliminary Results," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95980, African Association of Agricultural Economists (AAAE).
    12. Sparks, G.D. & Ortmann, G.F. & Lagrange, L., 2011. "An Economic Evaluation of Soybean-Based Biodiesel Production on Commercial Farms in Kwazulu-Natal, South Africa," International Journal of Agricultural Sciences and Technology (IJAGST), SvedbergOpen, vol. 50(3), September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaae10:95978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.