Recursive solution of linear-quadratic Nash games for weakly interconnected systems

A recursive method is developed for the solution of coupled algebraic Riccati equations and corresponding linear Nash strategies of weakly interconnected systems. It is shown that the given algorithm converges to the exact solution with the rate of convergence ofO(²), where is a small coupling parameter. In addition, only low-order systems are involved in algebrdic computations; the amount of computations required does not grow per iteration and no analyticity assumption is imposed on the system coefficients.This work was supported by Rutgers University Research Council under Grant No. 2-02188.     

An Iterative Procedure for Evaluating Digraph Competitions

A competition which is based on the results of (partial) pairwise comparisons can be modelled by means of a directed graph. Given initial weights on the nodes in such digraph competitions, we view the measurement of the importance (i.e., the cardinal ranking) of the nodes as an allocation problem where we redistribute the initial weights on the basis of insights from cooperative game theory. After describing the resulting procedure of redistributing the initial weights, an iterative process is described that repeats this procedure: at each step the allocation obtained in the previous step determines the new input weights. Existence and uniqueness of the limit is established for arbitrary digraphs. Applications to the evaluation of, e.g., sport competitions and paired comparison experiments are discussed.     

Carathéodory's method for a class of dynamic games

The method of equivalent variational methods, originally due to Carathéodory for free problems in the calculus of variations is extended to investigate feedback Nash equilibria for a class of n-person differential games. Both the finite-horizon and infinite-horizon cases are considered. Examples are given to illustrate the presented results.     

具有判断值支付的合作对策的M-S值

针对联盟支付以判断值给出的n人合作对策问题,提出了一个基于1-9 判断标度的合作对策Multiplicative-Shapley 值求解公式. 首先给出了判断值平均支付函数的定义,研究了判断值的一致性及其调整方法. 其次通过定义相应的特征函数,给出了具有判断值支付的n人合作对策的优超、伪凸、伪核心、单位元等系列概念,并由此提出一个满足3条公理的Multiplicative-Shapley 值公式. 最后通过一个算例,验证了Multiplicative-Shapley 值公式的可行性和有效性.     

Dual role of price and myopia in a marketing channel

In this paper we study a dynamic two-player channel where the manufacturer controls the wholesale price and the investment in quality and the retailer chooses the retail price. We consider that the retail price affects both the demand and the perceived quality of the brand and that its variations contribute to the building of an internal reference price. One of the model’s distinctive features is that it accounts for the two meanings of price, i.e., its classical objective measure of the cost of acquiring a particular quantity of the product, and its subjective roles as an assessment of the quality of the product and an evaluation of gains or losses (deal vs. sacrifice) resulting from buying a “cheap” or an “expensive” product. This dual computation is done with respect to the internal reference price.     

Avoiding unfairness of Owen allocations in linear production processes

This paper deals with cooperation situations in linear production problems in which a set of goods are to be produced from a set of resources so that a certain benefit function is maximized, assuming that resources not used in the production plan have no value by themselves. The Owen set is a well-known solution rule for the class of linear production processes. Despite their stability properties, Owen allocations might give null payoff to players that are necessary for optimal production plans. This paper shows that, in general, the aforementioned drawback cannot be avoided allowing only allocations within the core of the cooperative game associated to the original linear production process, and therefore a new solution set named EOwen is introduced. For any player whose resources are needed in at least one optimal production plan, the EOwen set contains at least one allocation that assigns a strictly positive payoff to such player.     

The complexity of recursion theoretic games

We show that some natural games introduced by Lachlan in 1970 as a model of recursion theoretic constructions are undecidable, contrary to what was previously conjectured. Several consequences are pointed out; for instance, the set of all -sentences that are uniformly valid in the lattice of recursively enumerable sets is undecidable. Furthermore we show that these games are equivalent to natural subclasses of effectively presented Borel games.

     

Reductions of interval noncooperative games

Noncooperative games of a finite number of persons with interval-valued payoff functions are considered. The concept of an equilibrium situation is introduced. A reduction of such games to deterministic noncooperative games is proposed. Properties of the reduced games are discussed. Interval antagonistic and bimatrix games are examined, and illustrative examples are considered.     

Optimal control of systems with multiple criteria when disturbances are present

Optimal control problems with a vector performance index and uncertainty in the state equations are investigated. Nature chooses the uncertainty, subject to magnitude bounds. For these problems, a definition of optimality is presented. This definition reduces to that of a minimax control in the case of a scalar cost and to Pareto optimality when there is no uncertainty or disturbance present. Sufficient conditions for a control to satisfy this definition of optimality are derived. These conditions are in terms of a related two-player zero-sum differential game and suggest a technique for determining the optimal control. The results are illustrated with an example.This research was supported by AFOSR under Grant No. 76-2923.     

Potential games and well-posedness properties

The aim of this article is to study potential games which are a special class of games, in fact their properties are dictated by a single function called the potential function. We consider Tikhonov well-posedness and other well-posedness properties introduced by the authors in Margiocco et al. (Margiocco, M., Patrone, F. and Pusillo Chicco, L., 1997, A new approach to Tikhonov well–posedness for Nash equilibria. Optimization, 40, 385–400) Margiocco and Pusillo (Margiocco, M. and Pusillo, L., Value bounded approximations for Nash equilibria, Preprint, Submitted). We relate these properties with the Tikhonov well posedness of the potential function as maximum problem.