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Domino effects within a chemical cluster: A game-theoretical modeling approach by using Nash-equilibrium

Genserik Reniers, Wout Dullaert, Soudan Karel

Journal of Hazardous Materials

Cilt: 167, Sayı: 1-3, 289-293, 2009/08/15

Every company situated within a chemical cluster faces domino effect risks, whose magnitude depends on every company's own risk management strategies and on those of all others. Preventing domino effects is therefore very important to avoid catastrophes in the chemical process industry. Given that chemical companies are interlinked by domino effect accident links, there is some likelihood that even if certain companies fully invest in domino effects prevention measures, they can nonetheless experience an external domino effect caused by an accident which occurred in another chemical enterprise of the cluster. In this article a game-theoretic approach to interpret and model behaviour of chemical plants within chemical clusters while negotiating and deciding on domino effects prevention investments is employed.

Anahtar Kelimeler: Game theory; Domino effects prevention; Nash equilibrium

Elsevier B. V.

DOI: 10.1016/j.jhazmat.2008.12.113

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