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Dynamics and allocation of transaction cost in multiagent industrial symbiosis

Dynamics and allocation of transaction cost in multiagent industrial symbiosis
Dynamics and allocation of transaction cost in multiagent industrial symbiosis
This paper discusses the dynamics of Transaction Cost (TC) in Industrial Symbiosis Institutions (ISI) and provides a fair and stable mechanism for TC allocation among the involved firms in a given ISI. In principle, industrial symbiosis, as an implementation of the circular economy paradigm in the context of industrial relation, is a practice aiming at reducing the material/energy footprint of the firm. The well-engineered form of this practice is proved to decrease the transaction costs at a collective level. This can be achieved using information systems for: identifying potential synergies, evaluating mutually beneficial ones, implementing the contracts, and governing the behavior of the established relations. Then the question is "how to distribute the costs for maintaining such an information system in a fair and stable manner?" We see such a cost as a collective transaction cost and employ an integrated method rooted in cooperative game theory and multiagent systems research to develop a fair and stable allocation mechanism for it. The novelty is twofold: in developing analytical multiagent methods for capturing the dynamics of transaction costs in industrial symbiosis and in presenting a novel game-theoretic mechanism for its allocation in industrial symbiosis institutions. While the former contributes to the theories of industrial symbiosis (methodological contribution), the latter supports decision makers aiming to specify fair and stable industrial symbiosis contracts (practical contribution).
Multiagent Systems, Applied AI, Computational Economics, Practical Applications of Multiagent Techniques, Circular Economy, Industrial Symbiosis
Yazdanpanah, Vahid
28f82058-5e51-4f56-be14-191ab5767d56
Yazan, Devrim Murat
84983095-8f6e-4dbe-baeb-c9cb6d4b2e84
Zijm, W. Henk M.
11a3616e-7e77-461d-aa43-aa0bcba337a3
Yazdanpanah, Vahid
28f82058-5e51-4f56-be14-191ab5767d56
Yazan, Devrim Murat
84983095-8f6e-4dbe-baeb-c9cb6d4b2e84
Zijm, W. Henk M.
11a3616e-7e77-461d-aa43-aa0bcba337a3

Yazdanpanah, Vahid, Yazan, Devrim Murat and Zijm, W. Henk M. (2020) Dynamics and allocation of transaction cost in multiagent industrial symbiosis

Record type: Monograph (Working Paper)

Abstract

This paper discusses the dynamics of Transaction Cost (TC) in Industrial Symbiosis Institutions (ISI) and provides a fair and stable mechanism for TC allocation among the involved firms in a given ISI. In principle, industrial symbiosis, as an implementation of the circular economy paradigm in the context of industrial relation, is a practice aiming at reducing the material/energy footprint of the firm. The well-engineered form of this practice is proved to decrease the transaction costs at a collective level. This can be achieved using information systems for: identifying potential synergies, evaluating mutually beneficial ones, implementing the contracts, and governing the behavior of the established relations. Then the question is "how to distribute the costs for maintaining such an information system in a fair and stable manner?" We see such a cost as a collective transaction cost and employ an integrated method rooted in cooperative game theory and multiagent systems research to develop a fair and stable allocation mechanism for it. The novelty is twofold: in developing analytical multiagent methods for capturing the dynamics of transaction costs in industrial symbiosis and in presenting a novel game-theoretic mechanism for its allocation in industrial symbiosis institutions. While the former contributes to the theories of industrial symbiosis (methodological contribution), the latter supports decision makers aiming to specify fair and stable industrial symbiosis contracts (practical contribution).

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2010.01361v1
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Published date: 3 October 2020
Keywords: Multiagent Systems, Applied AI, Computational Economics, Practical Applications of Multiagent Techniques, Circular Economy, Industrial Symbiosis

Identifiers

Local EPrints ID: 444652
URI: http://eprints.soton.ac.uk/id/eprint/444652
PURE UUID: ff5ae3ab-c87c-4474-baf8-fd0c2ce00495
ORCID for Vahid Yazdanpanah: ORCID iD orcid.org/0000-0002-4468-6193

Catalogue record

Date deposited: 28 Oct 2020 18:03
Last modified: 18 Feb 2021 17:42

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