Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review
Equilibrium and cooperation in repeated hierarchical games. / Petrosyan, Leon; Pankratova, Yaroslavna.
Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings. ed. / Michael Khachay; Panos Pardalos; Yury Kochetov. Springer Nature, 2019. p. 685-696 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 11548 LNCS).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review
}
TY - GEN
T1 - Equilibrium and cooperation in repeated hierarchical games
AU - Petrosyan, Leon
AU - Pankratova, Yaroslavna
PY - 2019/1/1
Y1 - 2019/1/1
N2 - In the paper a two-level infinitely repeated hierarchical game with one player (center) C0 on the first level and S1...Sn subordinate players on the second is considered. On each stage of the game player C0 selects vector x=(x1....xn) from a given set X, in which each component represents vector of resources delivered by C0 to one of subordinate players, i.e. (formula presented). At the second level, Si i=1,2..,n, choose the controls (formula presented), where Yi(xi) depends upon the choice of player C0. In this game, a set of different Nash equilibrium also based on threat and punishment strategies is obtained. In one case, the center enforces special behavior of subordinate firms (vector of manufactured goods), threatening to deprive them of resources on the next steps if the subordinate firms refuse to implement the prescribed behavior. In another case, the subordinate firms can force the center to use a certain resource allocation threatening to stop production. Using different combinations of such behaviors on different stages of the game, we obtain a wide class of Nash equilibrium in the game under consideration. The cooperative version of the game is also considered. The conditions are derived under which the cooperative behavior can be supported by Nash Equilibrium or Strong Nash Equilibrium (Nash Equilibrium stable against deviations of coalitions).
AB - In the paper a two-level infinitely repeated hierarchical game with one player (center) C0 on the first level and S1...Sn subordinate players on the second is considered. On each stage of the game player C0 selects vector x=(x1....xn) from a given set X, in which each component represents vector of resources delivered by C0 to one of subordinate players, i.e. (formula presented). At the second level, Si i=1,2..,n, choose the controls (formula presented), where Yi(xi) depends upon the choice of player C0. In this game, a set of different Nash equilibrium also based on threat and punishment strategies is obtained. In one case, the center enforces special behavior of subordinate firms (vector of manufactured goods), threatening to deprive them of resources on the next steps if the subordinate firms refuse to implement the prescribed behavior. In another case, the subordinate firms can force the center to use a certain resource allocation threatening to stop production. Using different combinations of such behaviors on different stages of the game, we obtain a wide class of Nash equilibrium in the game under consideration. The cooperative version of the game is also considered. The conditions are derived under which the cooperative behavior can be supported by Nash Equilibrium or Strong Nash Equilibrium (Nash Equilibrium stable against deviations of coalitions).
KW - Cooperation
KW - Nash equilibrium
KW - Repeated hierarchical game
UR - http://www.scopus.com/inward/record.url?scp=85067671871&partnerID=8YFLogxK
UR - http://www.mendeley.com/research/equilibrium-cooperation-repeated-hierarchical-games
U2 - 10.1007/978-3-030-22629-9_48
DO - 10.1007/978-3-030-22629-9_48
M3 - Conference contribution
AN - SCOPUS:85067671871
SN - 9783030226282
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 685
EP - 696
BT - Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Proceedings
A2 - Khachay, Michael
A2 - Pardalos, Panos
A2 - Kochetov, Yury
PB - Springer Nature
T2 - 18th International Conference on Mathematical Optimization Theory and Operations Research, MOTOR 2019
Y2 - 8 July 2019 through 12 July 2019
ER -
ID: 43716266