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Cena węgla brunatnego jako wyznacznik podziału zysku w układach kopalń i elektrowni. Część I – Propozycje podziału
[Lignite price as a determinant of the split of profit in systems of mines and power plants. Part I – Split of profit proposals]

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Author Info
Jurdziak, Leszek

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Abstract

Different structures of lignite mines and power stations, which have appeared on the Polish market as a result of its transformation and the privatisation, were discussed. The attention is focused on the fact that the practice is overtaking the theory because there is lack of models of functioning of such structures. A model of cooperation between the mine and the power station was worked out for the established amount of coal what can describe the situation of particular ultimate pit choice (in long run) or realization of supplies of the constant amount of lignite in frames of the long-term contract (in short run e.g. one of year). It is proposed to treat a negotiation of the lignite price as a constant sum game and a lignite price as the determinant of the total profit division. The choice of lignite price between prices outlining break-even points of the mine and the power station determines the distribution of the profit to both sides. It is similar to the contract curve in the classical bilateral monopoly model. Ten different methods of the profit division are proposed. Argumentation speaking for proposed solutions was presented favouring the pro-posal of equal profit margins calculated without the costs of fuel purchase.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2384.

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Date of creation: 01 Nov 2006
Date of revision: 27 Mar 2007
Publication status: Published in Górnictwo i geologia IX (Mining and geology IX) Prace Naukowe Instytutu Górnictwa Politechniki Wrocławskiej Nr 118 (Scientific Papers of the Institute of Mining of the Wroclaw Univ. of Technology No.118).Seria: Studia i Materiały Nr 33 (Series: Studies and Research No.33)(2007): pp. 43-57
Handle: RePEc:pra:mprapa:2384

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Related research
Keywords: Bilateral monopoly; pit optimisation; bargaining; price negotiation; fair division; Nash bargaining solution; Kalai-Smorodinsky solution; lignite price; lignite mine; lignite power plant; coal mine; coal power plant;

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Find related papers by JEL classification:
R32 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other Production and Pricing Analysis
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
D4 - Microeconomics - - Market Structure and Pricing
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
L0 - Industrial Organization - - General
D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jurdziak, Leszek, 2006. "Odkrywkowa kopalnia węgla brunatnego i elektrownia jako bilateralny monopol w ujęciu klasycznym," MPRA Paper 530, University Library of Munich, Germany, revised 20 Oct 2006. [Downloadable!]
  2. Jurdziak, Leszek, 2005. "Czy integracja pionowa kopalń odkrywkowych węgla z elektrowniami jest korzystna i dla kogo?," MPRA Paper 534, University Library of Munich, Germany, revised 31 Mar 2005. [Downloadable!]
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