An in-depth study of the basic assumptions ofgame theory Applied Research onGame Theory In fact, game theory has long since developed from the study of economic problems to the study of social problems, and has been widely used in many fields other than economics, such as political science, ...
Chapter 7: Game Theory I7.1 Why Game Theory?Payoff interdependency: the optimal choice by an agent depends on the actions of othersIn contrast withdecision-theoretic situation: no recognized payoff interdependencyE.g. in decision-theoretic: gas & electricity pricing; Windows’ operating system; wheat...
(IPPs) are introduced and analyze their economic consequences by using game theory. An electric utility and IPP are included in the model as players of the game. We consider an extensive game model of electricity market where IPP enter into the game, firstly as a group and secondly ...
PricingInventoryRevenue-sharingCost-sharingDigital goodsPiracyGame theoryIn this paper, we consider a supply chain with a single manufacturer and two competing retailers. The manufacturer sells his digital goods, which may be pirated, to customers through a traditional and a digital retail channel. It...
In this paper, we present a game theoretic framework for bandwidth allocation for elastic services in high-speed networks. The framework is based on the idea of the Nash bargaining solution from cooperative game theory, which not only provides the rate settings of users that are Pareto optimal ...
This paper utilizes the Stackelberg game theory to study the interaction between a seller and a buyer in a two-stage pricing and ordering systems with partial lost sales. We first explicitly include the purchasing cost into the buyer's total annual cost function to provide a more comprehensive ...
Game theory can be viewed in terms of its mathematics or as a tool to model the interaction between decision makers. The word “game” is an apt one to describe this because, just as in common parlor games such as Chess or Hex, much of game theory is concerned with how individual entit...
A Game Theory Analysis in Trade Security of Iron Ore The structure of bilateral oligopoly in iron ore international trade makes the monopoly profit, and the means to divide the monopoly profit is the pricing of iron ore. From the game analysis on pricing in iron ore international trade , t....
Other than sweeping sales in advance of the holiday season, companies must utilize game theory when pricing products for launch or in anticipation of competition fromrival goods. A balance must be found. Price a good too low and it won't reap profit. Price a good too high and it might pu...
A game theory analysis of port specialization—implications to the Chinese port industry The fast growth of the Chinese economy and its international seaborne trade has escalated the demand for high-quality and efficient port services. "Decentr......