Ingmar Vierhaus

Optimisation Methods in Sustainable Manufacturing

Sustainable manufacturing is driven by the insight that the focus on the economic dimension in current businesses and lifestyles has to be broadened to cover all three pillars of sustainability: economic development, social development, and environmental protection.

Strategic Uncertainty in Markets for Nonrenewable Resources: A Level- Approach

Existing models of nonrenewable resources assume that sophisticated agents compete with other sophisticated agents. This study instead uses a level- approach to examine cases where the focal agent is uncertain about the strategy of his opponent or predicts that the opponent will act in a nonsophisticated manner. Level-0 players are randomized uniformly across all possible actions, and level- players best respond to the action of player . We study a dynamic nonrenewable resource game with a large number of actions. We are able to solve for the level-1 strategy by reducing the averaging problem to an optimization problem against a single action. We show that lower levels of strategic reasoning are close to the Walras and collusive benchmark, whereas higher level strategies converge to the Nash-Hotelling equilibrium. These results are then fitted to experimental data, suggesting that the level of sophistication of participants increased over the course of the experiment.