eprintid: 2466
rev_number: 7
eprint_status: archive
userid: 93
dir: disk0/00/00/24/66
datestamp: 2007-04-01
lastmod: 2019-09-26 22:14:17
status_changed: 2007-11-07 01:29:23
type: paper
metadata_visibility: show
abstract: The newest outcome of bilateral monopoly (BM) of lignite opencast mine & power plant analysis have been discussed. The determinism of optimal solution maximising joint profits not only in quantity of lignite - the size and shape of the ultimate pit (characteristic to classical solution) but also in its price has been stressed. It is proposed to treat negotiation between power plant and mine as a cooperative, two-stage, two-person, non zero-sum game. In the first stage the ultimate pit maximising joint profits of BM should be chosen and in the second one, during bargaining, the split of profit ought to be decided together with choosing the transfer price of lignite. The level of lignite prices has been presented in the time of their control and confirmation (1996-2003) as well as their new profit sharing role in the period of their freely negotiation. The Nash bargaining solution has been proposed as a tool for equitable split of profit in BM due to its rational conditions. The application of this solution on example from the “Szczerców” deposit has been presented.
copyrightnote: I certify that I have the right to deposit my paper with MPRA
creators_name: Jurdziak, Leszek
creators_id: leszek.jurdziak@pwr.wroc.pl
date: 2006
date_issue: 2006
date_pub: 2006-09-20
date_revision: 2007-03-20
file_format: pdf
file_url: http://mpra.ub.uni-muenchen.de/2466/01/MPRA_paper_2466.pdf
full_text_status: public
identifierabstract: http://mpra.ub.uni-muenchen.de/2466/
institutions: Institute of Mining Engineering at Wroclaw University of Technology
institution: Institute of Mining Engineering at Wroclaw University of Technology
ispublished: pub
journal: Proceedings of the Fifteenth International Symposium on Mine Planning and Equipment Selection MPES’06
keywords: bilateral monopoly; price negotiation; lignite mine; lignite power plant; pit optimisation; cooperative game; bargaining; profit division; transfere price; Nash bargaining solution; lignite deposit;
language: en
note: Published in The Proceedings of the Fifteenth International Symposium on Mine Planning and Equipment Selection MPES’06. Ed. by M. Cardu [et al.]. Torino, Italy, 20-22 September, [Vol. 1. Galliate, (NO): FIORDO 2006], s. 32-37.
pagerange: 32-37
pages: 7
referencetext: Blair, R.D. & Kaserman, D.L. (1987). A Note on Bilateral Monopoly and Formula Price Contracts. The American Economic Review; June 77; 3.
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Jurdziak, L. (2000). Principles of creation of 3D value model and mining cost models for optimisation programs (in Polish). Gornictwo Odkrywkowe (Opencast Mining), No 1.
Jurdziak, L. (2004a). Tandem: lignite opencast mine & power plant as a bilateral monopoly. Mine Planning and Equipment Selection, A.A Balkema Publishers, Taylor & Francis Group plc.
Jurdziak, L. (2004b). The influence of lignite opencast mine optimisation on solution of bilateral monopoly model of lignite mine & power plant in long run (in Polish). Gornictwo Odkrywkowe (Opencast Mining) No 7-8.
Jurdziak, L. (2005). Forming lignite prices in conditions of their control and confirmation (in Polish). Gornictwo Odkrywkowe (Opencast Mining), No 4-5.
Jurdziak, L. (2006a). Negotiation between lignite mine and power plant as co-operational, two-stage, two-person game with non-zero sum (in Polish). Energetyka (Electric Energy Industry), No 2.
Jurdziak, L. (2006b in press). Nash bargaining solution and the split of profit in bilateral monopoly of lignite opencast mine and power plant. Part one: theoretical foundations and Part two: applications in strategic and tactical negotiations (in Polish). Gornictwo Odkrywkowe (Opencast Mining).
Jurdziak, L. & Kawalec, W. (2004). Sensitivity analysis of lignite ultimate pit size and its parameters on change of lignite base price (in Polish). Mining and geology VII. Scientific Papers of the Institute of Mining Engineering of the Wroclaw University of Technology No 106, Studies and Research No 30, Wroclaw.
Owen, G. (1975). Game theory (in Polish). PWN Warszawa.
subjects: R32
subjects: L22
subjects: Q31
subjects: L14
subjects: D43
subjects: Q41
subjects: D4
subjects: C72
subjects: L13
subjects: L10
subjects: C78
subjects: L42
subjects: L0
subjects: D86
subjects: L94
subjects: C71
subjects: C7
subjects: Q32
title: Lignite price and split of profit negotiation in bilateral monopoly of lignite opencast mine and power plant
citation:   Jurdziak, Leszek  (2006): Lignite price and split of profit negotiation in bilateral monopoly of lignite opencast mine and power plant.  Published in: Proceedings of the Fifteenth International Symposium on Mine Planning and Equipment Selection MPES’06   (20 September 2006): pp. 32-37.  
document_url: https://mpra.ub.uni-muenchen.de/2466/1/MPRA_paper_2466.pdf