A software based simulation for cleaner production: A game between manufacturers and government

This paper shows how game theory could be applied to better assess the various strategies available to government and manufacturers to promote more environmentally friendly products through cleaner production by examining several different game scenarios . In order to demonstrate the problem situation of cleaner production more visually, the ‘Gambit’ software package is used to simulate the created game models conceived as “two person non-cooperative” games. The application of game theory is shown to provide a useful insight into strategic decision making by both government and manufacturers. The limitation of the game model and the associated analysis is also discussed, laying a foundation for further work.

► We devise a generic game model in the field of cleaner production.
► Different game scenarios are generated to reflect the variation of strategic actions.
► ‘Gambit’ software package integrated with Excel spreadsheet is used for the game simulation.
► Major factors involved in the game are identified.