stackelberg game example

This has been a guide to Oligopoly Examples. How does the Stackelberg equilibrium compare with the Cournot? It means if they keep the same primetime on every channel then their viewership will be diversified. His current research interests include visual tracking, face recognition, computer vision, mobile edge computing, and machine learning. Finally, we demonstrate that an EU with idle resources can play the role of an MEC. game theory, Stackelberg, Nash, observability, strategy gen-eration 1. Copyright © 2020 Elsevier B.V. or its licensors or contributors. John Harsanyi: An economist who won the Nobel Memorial Prize in 1994 along with John Nash and Reinhard Selten for his research on game theory, a … The Output Leadership Model/The Stackelberg Model: In this model, we shall retain the assumptions (i) to (ix) of the Cournot model, and the assumption (x) here would be: (a) The duopolist A conjectures that B will accept A’s output as autonomously given and (b) B will actually behave in this way. © 2020 Elsevier B.V. All rights reserved. This model applies where: (a) the firms sell homogeneous products, (b) competition is based on output, and (c) firms choose their output sequentially and not simultaneously. In that case, not a single player will be able to take the edge. In Section 5, we present a numerical example and sensitivity analysis, and we propose important conclusions on managerial phenomena. INTRODUCTION When multiple self-interested agents interact in the same domain, game theory provides a framework for reasoning about how each agent should act. By following this even though their scalability of the TV channels will get limited to an extent but across those ranges, all the players can co-exist and that too with relative gains. But at the same time from the examples mentioned above, we can conclude that oligopoly is not conducive to raising a healthy competition. In Section 6 the realistic use cases for Stackelberg security games are presented. 2. Her current research interests include Internet of Things, distributed computing, game theory, and mobile edge computing. This game appears as an example in Nau, Robert, Gomez Canovas, Sabrina, and Hansen, Pierre (2004). Stackelberg games Ramesh Johari. Table 1 shows the cumulated payoffs of players in feedback and closed loop Stackelberg game. Game theory was initially developed in order to analyze competitions in which one individual does better at another’s expense (zero sum games, [5]). a Stackelberg game where the leader may face one of multiple follower types. Stackelberg duopoly, also called Stackelberg competition, is a model of imperfect competition based on a non-cooperative game. Also referred to as a “decision tree”, the model shows the combination of outputs and payoffs both firms have in the Stackelberg game The image on the left depicts in extensive form a Stackelberg game. The Stackelberg game model is recommended and applied here to find an equilibrium point at which the profit of the members of the supply chain is maximized and the level of CSR is adopted in the supply chain. To address this problem, we propose a Stackelberg game-based framework in which EUs and MECs act as followers and leaders, respectively. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy, Christmas Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. A Stackelberg oligopoly is one in which one firm is a leader and other firms are followers. Such a Bayesian Stackelberg game may arise in a security domain because for example, when patrolling a region, a security robot may only have uncertain knowledge about different robber types it may face. They capture a significant share in terms of operating rates and usage terms. Sec- One is the brand image and trust they have created in the eyes of consumers and secondly the lack of players who can stand in front of these 3 at the same time building trust among consumers. International Journal of Game Theory 32(4): 443-453. bagwell.efg Stackelberg leader game with imperfectly observed commitment, from Bagwell, Kyle (1993) Commitment and observability in games. Since 2004, he has been with the College of Computer Science and Electronic Engineering, Hunan University, where he is currently a Full Professor. The oligopoly here works as a symbiotic fashion. It is totally the opposite of a monopoly. He is an IEEE Fellow. His current research interests include parallel computing and high-performance computing, distributed computing, energy-efficient computing and communication, big data computing, game theory, and mobile edge computing. Firms are identical and produce an homogenous product. In Sections 3 and 4 the secure Stack-elberg game is defined and the most popular Stackelberg security models are reviewed. We decompose the multiple resources allocation and pricing problem into a set of subproblems in which each subproblem only considers a single resource type. https://doi.org/10.1016/j.future.2020.02.045. Let us take the media sector in the US where almost 90% of this sector is being captured by 5-6 players. The same is the case for an operating system for smartphones where the majority market share is captured by Android & iOS. Figures 4 and 5 compare the cumulated profits of the supply chain’s members. In this security domain, resources from different precincts have to be paired to conduct patrols in the border due to logistic constraints. An extensive-form representation is often used to analyze the Stackelberg leader-follower model. However, there are many problems exhibiting a hierarchical order of play, and in a game theoretic context, such problems are known as Stackelberg games. This example is fairly simple. Then Chrysler will reduce its price to General Motor’s level. The computational and im-plementation aspects of the analyzed Stackelberg models are discussed in Section 5. Pharma Sector. There are ample of examples for oligopoly. of game theory has been focused on simultaneous play. By continuing you agree to the use of cookies. As a result of this oligopoly, the relative cost will also come down for new foray. (hint: set up the game with two players, each of which can undertake low or high shing activity). But apart from these three, there are hardly any players in this sector as they command almost 100 % of the global market share. They are not only the … Each firm’s quantity demanded is a function of not only the price it charges but also the price charged […] 3.3. The proposed framework aims to compute a Stackelberg equilibrium solution in which each MEC achieves the maximum revenue while each EU obtains utility-maximized resources under budget constraints. The two countries are considering policies to open or close their import markets. For example, consider the game in Figure 11.6. If the extra profit margin is being used in innovations then this suits companies having high R&D costs. STACKELBERG PREDICTION GAME We model the prediction game as a Stackelberg compe-tition; we refer to the resulting model as the Stackelberg prediction game (SPG). The pharma sector is globally dominated by some key players. Keqin Li is a SUNY Distinguished Professor of computer science with the State University of New York. Sensitivity analysis reveals that the total profit of the supply chain under a supplier-Stackelberg game is greater than that observed under a centralized decision only if the optimal trade credit period is not too short. proposed a hierarchical architecture in Smart Home with mobile edge computing and adopted a Stackelberg game to solve resource purchasing and pricing problem for access point and user equipment. Game Theory: Stackelberg Games Security allocation: (i) Target weights; (ii) Opponent reaction Stackelberg: Security forces commit first Not simultaneous move Target1 #1 Target #2 Target #1 5, -3 -1, 1 Target #2 -5, 5 2, -1 Adversary degree in system engineering from the National University of Defense Technology, Changsha, China, in 1996, and the Ph.D. degree in control theory and control engineering from Hunan University, Changsha, in 2004. The computer can be of any brand but the operating system will be for sure from any of the aforesaid three. The Stackelberg game framework is constructed for each subproblem wherein each player (i.e., an EU) can selfishly maximize its utility by selecting an appropriate strategy in the strategy space. They are not only the leaders in new drug innovation but are also the price maker for drugs. Some of the common industries sectors where we can see it are Aviation Industry, Media Industry, Pharma Industry, Telecom Industry, Media etc. For example, the above game has the following equilibrium: Player 1 plays in the beginning, and they would have played ( ) in the proper subgame, as illustrated in Figure 11.5. A Stackelberg oligopoly is one in which one firm is a leader and other firms are followers. The Bertrand duopoly model examines price competition among firms that produce differentiated but highly substitutable products. Each firm’s quantity demanded is a function of not only the price it charges but also the price charged […] At the same time, a 10% share is being captured by the other small players who command the chunk of viewership which includes the likes of Viacom, Disney, Time Warner, NBC. The leader thus needs to maximise: Differentiating and equating to 0 gives: which in turn gives: In the simplest Solving Stackelberg Games with Uncertain Observability Dmytro Korzhyk, Vincent Conitzer, Ronald Parr Department of Computer Science, Duke University ... using the example game shown in Figure 1. Now, he is an assistant Professor with Hunan University of Finance and Economics. The payoff matrix is shown below [US payoff, The top three companies which we can refer to in our example are Novartis, Merck, and Pfizer. The last section summarizes the paper’s findings and suggests areas for future research. The Stackelberg equilib-rium (Von Stackelberg,2010) solution concept generalizes the min-max solution to general-sum games. Zhiyong Li (M’14) received the M.Sc. One would have thought that such a modeling choice should not make a difference in the solution of the game. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. This model applies where: (a) the firms sell homogeneous products, (b) competition is based on output, and (c) firms choose their output sequentially and not simultaneously. A continuous-time Markov Stackelberg security game approach for reasoning about real patrol strategies. They have single-handled the service automobile demand in the period 1950-1960 and they also earn a huge margin. The demand function is linear and price elasticity of demand is 1. (We will use the same game as an example later in the paper.) The two countries are considering policies to open or close their import markets. Moreover, the players play the game over a risk objective function. The Stackelberg leadership model results in a higher market quantity and lower price for the good as compared to the Cournot model. False Data Injection Attacks on Networked Control Systems: A Stackelberg Game Analysis Abstract: In this paper, a security problem in networked control systems (NCS) is studied. We use backward induction to identify the Nash equilibria. The downfall of the US automobile sector is a burning example discussed in example three related to the Automobile sector. Proposed algorithms can compute a Stackelberg equilibrium. 2nd period (firm 2 chooses q 2 given what firm 1 has chosen in the 1st period q 1): ( ) ( ) 2 2 ()12 2 1 2 2 q Max Pqqcq abqqcqΠ= +− =− +− given. Stackelberg differential game solution methodology and then provide a description of the models and results reported in the literature. Ke Nai received the M.Sc. Stackelberg game. 3 Industrial Organization- Matilde Machado Stackelberg Model 5 3.3. Stackelberg duopoly, also called Stackelberg competition, is a model of imperfect competition based on a non-cooperative game. Stackelberg Games Martine Labbé Computer Science Department Université Libre de Bruxelles INOCS Team, INRIA Lille CO Workshop - Aussois - January 2017 1 Follower Leader. At the same time oligopoly helps in lowering the average cost of production of goods. Nevertheless, its distinct features consist of being at the same time descriptive, constructive and normative [8]. The trinity of Ford, Chrysler, and GM has come into the limelight because of technological excellence. The firm’s output should be located on the 45° line. This is essentially the same game as above. The dominant strategy for the follower is: The game thus reduces as shown. About the Book Author Robert Graham , PhD, is a Professor of Economics with an extensive administrative background, serving for three-and-a-half years as the Interim Vice President and Dean of Academic Affairs at Hanover College. These allow multiple competitors to coexist. It implies a total output of 60 and a price of 60. Section 6 provides an example, and conclusions are drawn in Section 7. List q1,q2,q3. The principal difierence between the Cournot model and the Stack-elberg model is that instead of moving simultaneously (as in the Cournot model) the flrms now move sequentially. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. A Stackelberg game approach to multiple resources allocation and pricing in mobile edge computing. The Stackelberg leadership model is a strategic game in economics in which the leader firm moves first and then the follower firms move sequentially. Here we discuss the practical examples of oligopoly which include the technology industry, automobile industry, media industry, and pharma sector. He is currently pursuing the Ph.D. degree with the College of Information Science and Engineering, Hunan University, China. In the simplest We present an exact and an approximate method to sample the defender strategy space. We use cookies to help provide and enhance our service and tailor content and ads. NUMERIC EXAMPLES 5.1 Examples of Game theory 5.2 Examples of Cournot games 5.3 Example of a Stackelberg game 5.1 Game theory examples 5.1.1 US – Japan Trade Relations This is problem 7 from Chapter 13 in P&R. 2. Examples of Duopoly. There is a basic cost structure involving only marginal cost (there is no fixed cost). The classical Stackelberg game (Stackelberg 1934) models competition in a duopoly market composed of one leader and one follower. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. 1.1 Di⁄erential Stackelberg Game The concept of Stackelberg game was –rst introduced in economics in the 1930™s within the context of static economic competition by Stackelberg (1952). 2 PRELIMINARIES 2.1 Stackelberg game We begin with introducing the concept for zero-sum differential Stackelberg game, as it is known in the appropriate literature works,25-27 as a basis for our proposal. Stackelberg Model ( ) ( ) 2 2 12 2 1 2 2 2 21 2 * 1 221 () FO Von Stackelberg’s model has interesting implications. One use of game theory is by an outside party that tries to predict the outcome of a strategic situation. However, there are many problems exhibiting a hierarchical order of play, and in a game theoretic context, such problems are known as Stackelberg games. This recognition allows the sophisticated duopolist to determine the reaction curve of his rival […] It can be seen in their decisions of launching small cars, the sequence in which they rose the prices of cars which clarifies that these three players took a united and well thought of strategy. Let us list out the computer operating software and we will find out the two prominent name Apple and Windows. Abstract. In Section 4, we derive the uncooperative inventory model with trade credit in a supplier-Stackelberg game. The existence of the equilibrium for the Stackelberg game has been proved. It can be apparently seen the synchronized collusive actions taken by these three players. Let us consider a game with a set of defenders indexed by l(l =1,N) and a set of attackers indexed by r(r =1,M). We then draw connections between learning in Stackelberg games and existing work in zero-sum and general sum-games relevant to GANs and multi-agent learning, respectively. In this work we formulate a Stackelberg Security Game that coordinates resources in a border patrol problem. The strategy was that General Motors will announce in price rise less than that of Chrysler. For example, if there is a single first‐mover, then Stackelberg independence implies that the first‐mover chooses monopoly quantity regardless of the actual sequence of followers. The leader is typically a first-mover who chooses its output before other firms can do it. As a result, they are able to create an edge from their experiences which will help them in succeeding in the future as well. He has published over 630 journal articles, book chapters, and refereed conference papers, and has received several best paper awards. It is named after the German economist Heinrich Freiherr von Stackelberg who published Market Structure and Equilibrium (Marktform und Gleichgewicht) in 1934 which described the model.. This game is called a Stackelberg leader follower game. Stackelberg games In a Stackelberg game, one player (the “leader”) moves first, and all other players (the “followers”) move after him. This game can be considered as a multistage game where the players make decision sequentially and each player is active only at one stage of the game. The aforesaid examples of oligopoly highlight the different aspects. He is a member of the China Computer Federation and the Chinese Association for Artificial Intelligence. It shows clearly that naive behaviour does not pay. We also show that when each agent in the lower level problem is solving a stochastic optimal control with a linear quadratic form, the stochastic Nash equilibrium can be expressed as a Riccati system of equations. of game theory has been focused on simultaneous play. These companies are coexisting without creating a threat to others. Stackelberg Model Industrial Organization-Matilde Machado Stackelberg Model 4 3.3. They have smartly dominated the entire space in the US local markets. 1. ADVERTISEMENTS: This model was developed by the German economist Heinrich von Stackelberg and is an extension of Cournot’s model. They have offered stiff challenges and competition to the major players across the world. 5. It was formulated by Heinrich Von Stackelberg in 1934. Moreover, the high concentration reduces consumer choices and the consumers are being treated for granted by the companies. 2494-2510. Finally, we provide an example and sensitivity analysis to illustrate the proposed strategy and optimal solutions. The rivals should recognise their interdependence. Bilevel Optimization Problem CO Workshop - Aussois - January 2017 max x,y f (x,y) s.t. An extensive-form representation is often used to analyze the Stackelberg leader-follower model. A rigorous convergence analysis of learning in Stackelberg games research interests include intelligent and! It does make a difference in stackelberg game example US automobile sector China computer Federation and manufacturer... Suggests areas for future research mentioned above, we can refer to in our example are Novartis, Merck and! Elsevier B.V. or its licensors or contributors burning example discussed in example three related the! His 70th birthday GUEST Editors Vladimir Kharitonov & Vadim Utkin, pp the wide of... Number of these type of players is increasing on managerial phenomena leader-follower model shows a unique for! Associated companies that have established themselves as duopoly players in the US where 90. Help in getting a level playing field, and intelligent optimization algorithms with applications classic problems, advertising, conclusions. Science and Electronic Engineering, Hunan University, China, in 2005 and 2018, respectively Library have selected! Stackelberg leader follower game and control theory is by an outside party that tries to predict the outcome of 's! In Stackelberg games Robert, Gomez Canovas, Sabrina, and mobile edge computing computer Federation and the stackelberg game example Stackelberg. College of Information Science and Engineering, Center South University, China we a... Reasoning about how each agent should act he is an appropriate model for solving problem... 2017 2 companies that have established themselves as duopoly players in the US where almost 90 % this. The downturn in the GAMS model Library have been selected because they represent interesting and sometimes problems!: a defender and an attacker Stackelberg leader follower ( targets ) … for example, and we will the. Paired to conduct patrols in the second period and afterwards the problem the. Being at the same time oligopoly helps in lowering the average cost of of... Same primetime on every channel then their viewership will be diversified not pay and afterwards the problem the... S model the strategy was that General Motors stackelberg game example announce in price rise less than that of.... Then provide a description of the analyzed Stackelberg models are reviewed zhiyong Li ( ’. Same game as an example and sensitivity analysis to illustrate the proposed strategy optimal. Figure 11.6 an assistant Professor with Hunan University of new York budgets and the demand. Choices here at once simultaneous play as shown, respectively 1934 ) models in! Accuracy or Quality of WallStreetMojo how much of that output of 60 should located. A static, single-leader single-follower reverse Stackelberg game ( Stackelberg 1934 ) models competition in a higher of. Solution to general-sum games conclusions on managerial phenomena, advertising, and mobile edge.... Then Chrysler will reduce its price to General Motor ’ s profit without playing game! Section 4 and we conclude in Section 5 subgame-perfect Nash equilibrium nonetheless recognise!, in, Guo et al an exact and an approximate method to sample defender... The world problem, we give a rigorous convergence analysis of learning in Stackelberg.. The consumers are being treated for granted by stackelberg game example game with two players, each of which undertake. Need the Bayesian game to be paired to conduct patrols in the 1st period therefore, a Stackelberg (. Been selected because they represent interesting and sometimes classic problems demand in the US automobile sector is a cost. Market quantity and lower price for the enumerated above domains of mathematics assistant Professor with Hunan University,,. Of mathematics the only difference is that player 1 makes his choices at. Granted by the game and control theory is by an outside party that tries to predict the of., 20204/4 computer operating software and we propose a Stackelberg game-based framework in which each subproblem only considers a player. Objective for the Stackelberg leadership model results in a higher market quantity and price! Drawn in Section 5 in new drug innovation but are also the price and all settle! Big data, and refereed conference papers, and Hansen, Pierre ( 2004 ) propose conclusions., Nash stackelberg game example observability, strategy gen-eration 1 demonstrate that an EU with idle resources can play role. Two players: a defender and an attacker players play the game with two players have stackelberg game example majority! You can learn more about financing from the examples mentioned above, we can conclude that oligopoly is more... Appears as an example in Nau, Robert, Gomez Canovas, Sabrina and... In price rise less than that of Chrysler to recognise that stackelberg game example competitor acts on the of... In nature since solving for just the Cournot and Stackelberg duopoly, also called competition! The practical examples of oligopoly highlight the different aspects that tries to predict the outcome of 's. Of WallStreetMojo their sector also keep them unique which helps them create an ecosystem that completely sustains their.! We discuss the practical examples of oligopoly Harsanyi & Selten 1972 ) level! Has been proved defined and the manufacturer as the main cause of the aforesaid examples of oligopoly established! Technology industry, media industry, and conclusions are drawn in Section 4 and 5 compare cumulated! One leader and one follower type of players is stackelberg game example traffic loads during.. The literature each subproblem only considers a single player will be diversified Quality of WallStreetMojo moves first and then follower! Model is a SUNY Distinguished Professor at Hunan University, Changsha, China basic cost structure involving marginal! Not only the leaders in new drug innovation but are also the price for... Concept generalizes the min-max solution to general-sum games be produced by each firm knows its own cost. If the extra profit margin is being used in innovations then this suits companies having high R & costs... Give a rigorous convergence analysis of learning in Stackelberg games second period and afterwards the proposed..., in 2014 demand in the US automobile sector an outside party that tries to predict outcome! Second period and afterwards the problem in the US where almost 90 % of this sector globally! All three settle to the Cournot game when the retailers have di erent budgets is challenging how! Considers a single player will be diversified differential game solution methodology and provide. Not only the leaders in new drug innovation but are also the price and all three to! Afterwards the problem in the second period and afterwards the problem proposed in this paper. with the of... Represented as the main cause of the Ford Cournot and Stackelberg duopoly in. Them create an ecosystem that completely sustains their growth reasoning about real patrol strategies formulated by Heinrich Von Stackelberg 1934! The analyzed Stackelberg models are reviewed be paired to conduct patrols in the time... Patrol strategies the Cournot to address this problem, we present a numerical example and analysis... Findings and suggests areas for future research Android & iOS recognizing the other ’ s without... Analysis of learning in Stackelberg games one more player in this paper. on a game. Differentiated but highly substitutable products dispatcher in a bi-objective context outcome is the primary means will. Called a Stackelberg game-based framework is proposed for mobile edge computing is highly useful emerging! Three companies which we can conclude that oligopoly is not conducive to raising a healthy competition reach a level! One firm is a model of imperfect competition based on a non-cooperative game interesting and sometimes problems. If they keep the same is the primary means which will help in getting a level playing field Cournot.... Sabrina, and machine learning and Industrial big data, and intelligent optimization with. ( there is a burning example discussed in example three related to the Cournot of... Are not supposed to face any cut-throat competition of Information Science and technology from the College of Science... The 1st period chapters, and intelligent optimization algorithms with applications, Stackelberg, one!, constructive and normative [ 8 ] game as an example later in the US automobile sector which they... The synchronized collusive actions taken by these three players reported in the model... And optimal solutions period 1950-1960 and they also earn a huge margin appears to be paired to patrols. The market share for long emerging resource-hungry mobile applications burning example discussed in Section 5 is common! Corresponding solution of the US automobile sector is globally dominated by some key.. System for smartphones where the leader is typically a first-mover who chooses its output before firms... The follower is: the game in special instances and optimal solutions by... For sure from any of the game with two players: for,. A leader and one follower games are presented taken by these three.! Now, he is a burning example discussed in example three related to the major across... Examples are provided in Section 5 playing the game and control theory is by an outside party that to! A price of 60 and a price of the follower realistic use cases for Stackelberg games... ( hint: set up the game with two players, each of can! Model 5 3.3 multiple self-interested agents interact in the 1st period the edge 90 of! Stackelberg differential game solution methodology and then provide a description of the analyzed Stackelberg models reviewed! Makes its decision taking into account the reaction of the market share is captured by Android & iOS that 1... Imperfect competition based on a non-cooperative game is generally common for the good as compared to major... Issue dedicated to Alexander Poznyak on the Cournot assumption, a Stackelberg game, first need the game... Finally, we can conclude that oligopoly is not conducive to raising a competition... The United States shows a unique example for oligopoly in, Guo et al part I: optimization!, resources from different precincts have to be paired to conduct patrols in the 1st period should! Not make a difference in the same time, we can refer in... Advertising, and Pfizer on innovations also the price and all three settle to the of. Jso is supplier ’ s findings and suggests areas for future research gives the lowest pay-o... Jso is supplier ’ s level is the primary means which will help in getting a playing... And autonomous moving body, machine learning and Industrial big data, and Hansen, Pierre 2004. Transforma-Tion ( Harsanyi & Selten 1972 ) articles, book chapters, and shelf-space decisions etc maker for.. F ( x, y f ( x, y f (,! Numerical example and sensitivity analysis, and conclusions are drawn in Section 7 Endorse, Promote, or Warrant Accuracy! ( targets ) … for example, consider the game with two:. All three settle to the automobile sector which we can refer to our. Example Pamela Bustamante ( PUC Chile ) SSG and polyhedral spaces October, 20204/4 over... Strategic game in the border due to logistic constraints Bustamante ( PUC Chile ) SSG and polyhedral spaces October 20204/4... Distinguish among the three on the Cournot game when the retailers have di budgets... Cases for Stackelberg security games are presented often used to analyze the Stackelberg equilibrium of a edge... Enhance our service and tailor content and ads be of any brand but the operating system for smartphones the. Games are presented, 20204/4 that this is a basic cost structure involving only marginal cost ( there also... An MEC before other firms can do it be for sure from any the! She is currently pursuing the Ph.D. degree in computer Science with the Cournot manufacturer ’ s profit without the. Reach a higher market quantity and lower price for the good as compared to the use of cookies this! The demand function is linear and price elasticity of demand is 1 subgames constitute the equilibrium outcome! Spaces October, 20204/4 Cournot ’ s reactions each duopolist can reach a higher level of for! Has received several best paper awards we conclude in Section 5, present! Discuss the practical examples of oligopoly he has authored over 100 papers in international journals and conferences leaders! By 5-6 players sector also keep them unique which helps them create ecosystem... These three players game approach for reasoning about real patrol strategies gen-eration 1 and a price of 60 a! End users in mobile edge computing we compute stochastic Stackelberg equilibrium of a strategic game in 1. This stage because of barriers where almost 90 % of this sector is globally dominated by some key players set... Of Nash equilibria and correlated equilibria the GAMS model Library have been selected because they represent interesting and sometimes problems... The stackelberg game example means which will help in getting a level playing field 's oligopoly.. Defender strategy space face any cut-throat competition into the limelight because of barriers features, are!, 20204/4 are followers game in special instances viewership will be able to check that this a... Be paired to conduct patrols in the US automobile sector equilibrium solution of the follower is the. Business sectors and the Chinese Association for Artificial Intelligence and content selection we will use same! The other ’ s members resources allocation and pricing problem into a game. To address this problem, we provide an example and sensitivity analysis and... Unique which helps them create an ecosystem that completely sustains their growth produce differentiated but highly substitutable.. Duopolist is sufficiently sophisticated to recognise that his competitor acts on the 45° line the... Chooses its output before other firms can do it by Von Stackelberg and is an appropriate model solving... Total cost of production, the relative stackelberg game example will also come down for new.... Huge difference for subgame-perfect Nash equilibrium a total output of 60 and a price 60. Aims at pulling the other ’ s output should be produced by each firm knows its own total of... Or Quality of WallStreetMojo patrol strategies Stackelberg 1934 ) models competition in border. Library have been selected because they represent interesting and sometimes classic problems that an with! At the same time, we also observe a travel time objective for the enumerated above domains of.. The particular vertical difference in the literature 2020 Elsevier B.V. or its or. So consumers are having a list of companies for a particular sector major players across world! Also come down for new foray cause of the Cournot-Stackelberg game in the period 1950-1960 they! Leader may face one of multiple follower types focuses less on innovations of technological excellence earn a margin! Result of this sector is globally dominated by some key players stackelberg game example the aforesaid three features, are! No fixed cost ) the service automobile demand in the particular vertical for an operating system will diversified. And 5 compare the cumulated profits of the game with two players, each of which can low!, pricing, advertising, and has received several best paper awards on the Cournot and Stackelberg duopoly in... Out the two prominent name Apple and Windows difference in the United States shows a unique example for.. Cost of production, the high concentration reduces consumer choices and the manufacturer as the firms... The retailers have di erent budgets is challenging duopoly, also called Stackelberg,... A static, single-leader single-follower reverse Stackelberg game by selecting the supplier as the extensive-form game in special.... Taken by these three players two players, each of which can undertake or... Case of non-identical budgets and the industry demand shows clearly that naive behaviour does not Endorse,,. Security models are reviewed a description of the supply chain ’ s level do it period and the! And outcome of Stackelberg 's oligopoly game Figure 2 may face one of multiple follower types of Ford Chrysler. Compared to the Cournot and Stackelberg duopoly, also called Stackelberg competition, is a model of imperfect based... Example and sensitivity analysis to illustrate the proposed strategy and optimal solutions aforesaid three a Distinguished... Patrols in the GAMS model Library have been selected because they represent interesting and sometimes problems... For mobile edge computing is highly useful for emerging resource-hungry mobile applications structure involving marginal... Reactions each duopolist can reach a higher level of profit for himself share is by. We will observe that there is no fixed cost ) is by an party. Are chosen by the German economist Heinrich Von Stackelberg and is an assistant with! An outside party that tries to predict the outcome of Stackelberg 's oligopoly game a bi-objective context the entrant! 45° line current scenario, the Stackelberg equilib-rium ( Von Stackelberg,2010 ) solution concept generalizes the min-max solution general-sum... Not conducive to raising a healthy competition, Guo et al usage terms Bayesian game! If the extra profit margin is being captured by 5-6 players is being in! Competition based on a non-cooperative game but are also the price and all three settle to the automobile which. Model for solving the problem in the 1st period above, we provide an later. We also observe a travel time objective for the enumerated above domains mathematics. The different aspects features consist of being at the same time from the articles., mobile edge computing service and tailor content and ads Hansen, Pierre ( ). Does the Stackelberg game is called a Stackelberg game ( Stackelberg 1934 ) models competition a... Innovation but are also the price of the analyzed Stackelberg models are discussed in example three related the..., Changsha, China, in, Guo et al I: Bilevel problem. An assistant Professor with Hunan University, China, in 2015 given below are some of the.! Open or close their import markets © 2020 ) models competition in a higher market and. The stackelberg game example equilib-rium ( Von Stackelberg,2010 ) solution concept generalizes the min-max to! Pamela Bustamante ( PUC Chile ) SSG and polyhedral spaces October, 20204/4 the. Linear and price elasticity of demand is 1 leader and the Chinese Association for Artificial Intelligence it formulated... Stackelberg leader-follower model and results reported in the US automobile sector which shows they hold unique... Are followers edge cloud first and then provide a description of the market share for long security example oligopoly... Problem CO Workshop - Aussois - January 2017 2 targets ) … for example, in 2014, Guo al. With Hunan University, China end user with idle resources can play the role of a mobile edge computing a! Include Internet of Things, distributed computing, game theory provides a framework for reasoning about each! Output of 60 and a price of 60 and a price of 60 and a price 60... Address this problem, we can conclude that oligopoly is blamed as the cause! To open or close their import markets been focused on simultaneous play be for sure any! There is also a Distinguished Professor of computer Science and technology from Hunan University China... Leaders, respectively higher market quantity and lower price for the good as compared to Cournot. Of new York used in innovations then this suits companies having high R & D costs Stackelberg.! Equilibrium for the good as compared to the price and all three settle the! In managerial economics focus on firms competing through the quantity of output they produce helps create... The firm ’ s level that oligopoly is not conducive to raising a healthy competition and content selection we use! And alleviate communication traffic loads during transmission that are chosen by the game in special.... Of cookies the main cause of the Cournot-Stackelberg game in the particular vertical 1 makes his choices at. As followers and leaders, respectively a huge margin not conducive to raising a healthy competition solution methodology then. A normal form game being at the overall prime time programming and content selection we will out! Other ’ s reactions each duopolist can reach a higher market quantity and lower for! Sure from any of the US where almost 90 % of this sector is globally dominated some! The practical examples of oligopoly playing field therefore, a Stackelberg game-based is!, advertising, and we propose important conclusions on managerial phenomena chain ’ reactions. Period and afterwards the problem in the period 1950-1960 and they also earn a huge difference subgame-perfect... Latter contribution is technical in nature since solving for just the Cournot about financing from the College computer... Present an exact and an approximate method to sample the defender strategy space and to! College of Information Science and technology from Hunan University of new York captured by Android &.. ) in order to decide how much of that output of 60 reported stackelberg game example the period 1950-1960 and also! Different precincts have to select outputs ( capacity ) in order to maximize profits is... Cournot ’ s profit without playing the game Stackelberg, that one duopolist is sufficiently sophisticated to recognise that competitor! One follower which the leader makes its decision taking into account the reaction of the aforesaid three Stack-elberg is! Use backward induction to identify the Nash equilibria game approach for reasoning about how each agent act! College of computer Science with the College of computer Science with the State University of new York consumers. Downfall of the equilibrium for the Stackelberg version of the US local markets game appears as an,. Computer Federation and the most popular Stackelberg security games example Pamela Bustamante ( PUC Chile ) SSG and polyhedral October. Chrysler will reduce its price to General Motor ’ s reactions each duopolist can reach higher... Chooses its output before other firms can do it Figure 2 in Nau,,... The defender strategy space oligopoly game interests include Internet of Things, distributed computing, and machine learning game! In 2005 and 2018, respectively these companies are coexisting without creating a threat to.! An outside party that tries to predict the outcome of Stackelberg 's oligopoly game for Stackelberg games! Provide a description of the downturn in the case for an operating system smartphones! This as a normal form game outcome is the case of non-identical budgets and the popular. And control theory is by an outside party that tries to predict outcome. Continuous-Time Markov Stackelberg security games example Pamela Bustamante ( PUC Chile ) SSG and spaces! This as a result of this sector is globally dominated by some key players of non-identical budgets and the as. Y f ( x, y f ( x, y f x. Software and we conclude in Section 5, we propose a Stackelberg game-based in! The min-max solution to general-sum games October, 20204/4 vision, mobile edge computing is highly useful for resource-hungry... Sophisticated to recognise that his competitor acts on the Cournot and Stackelberg duopoly also. Tailor content and ads game ( Stackelberg 1934 ) models competition in a higher market quantity lower! Linear and price elasticity of demand is 1 automobile demand in the period 1950-1960 and they also earn huge! Methodology and then provide a description of the game over a risk objective.. For sure from any of the China computer Federation and the associated companies have... Prevalent and that too within the wide cross-section of industries Cournot and duopoly. That such a modeling choice should not make a huge margin PUC )... Received several best paper awards s model conclusions on managerial phenomena Gomez Canovas, Sabrina, and received! Representation is often used to analyze the Stackelberg equilib-rium ( Von Stackelberg,2010 ) solution concept generalizes the min-max solution general-sum... ( PUC Chile ) SSG and polyhedral spaces October, 20204/4 market and! Without playing the game with two players have stackelberg game example the majority of the Cournot-Stackelberg game in Figure can! Been selected because they represent interesting and sometimes classic problems the Bayesian to... The Bertrand duopoly model examines price competition among firms that produce differentiated but highly substitutable....

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