Analysis of Equilibrium Points in Economic Games

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Beheshti, Pedram | 2015

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 46893 (19)
University: Sharif University of Technology
Department: Computer Engineering
Advisor(s): Habibi, Jafar
Abstract:
Nowadays economical issues are greatly taken into consideration. In this project we aim to study a problem of this area, which focuses on the subject of location allocation and pricing strategy for a good supplier. Solution evaluation is done by taking costumer demand into account. This problem has a sequential characteristic. That is players do not take their decisions at the same time. Suppliers should first decide about where and how they plan to provide their goods. On the other hand almost every economical problem have multiple players who play with or against each other. Therefore modeling this problem using Stackelberg leadership model is a natural choice. Since this problem is in the NP-hard class, we aim to propose a heuristic solution. The proposed method divides this problem into two steps of location allocations and deciding on pricing policy. Simulation results show that using the simple, greedy location allocation method in conjunction with the proposed pricing strategy would provide desirable results
Keywords:
Optimization ; Nash Equilibrium Point ; Stackelberg Game ; Game Theory ; Location-Allocation Model ; Financial Games ; P-Medianx Problem