This report gives an overview of the linear complementarity problem, as a special case of mathematical programming with equilibrium constraints. The interior point method and two versions of Lemke’s method are reviewed, as methods for solving the linear complementarity problem. The report concludes with a description of the Stackelberg game and the bimatrix game as possible applications of math...

This paper considers advertising, collection and pricing decisions simultaneously for a closed-loop supply chain (CLSC) with one manufacturer (he) and two retailers (she). A multiplicatively separable new demand function is proposed which influenced by pricing and advertising. In this paper, three well-known scenarios in the game theory including the Nash, Stackelberg and Cooperative games are ...

Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer’s lead time includes the transportation time from the warehouse to the retailer that is unknown to the retailer. On the other hand, the warehouse is unaware ...

We address the problem of spectrum sharing where competitive operators coexist in the same frequency band. First, we model this problem as a strategic non-cooperative game where operators simultaneously share the spectrum according to the Nash Equilibrium (NE). Given a set of channel realizations, several Nash equilibria exist which renders the outcome of the game unpredictable. Then, in a cogn...

There has been significant recent interest in game theoretic approaches to security, with much of the recent research focused on utilizing the leader-follower Stackelberg game model; for example, these games are at the heart of major applications such as the ARMOR program deployed for security at the LAX airport since 2007 and the IRIS program in use by the US Federal Air Marshals (FAMS). The f...

This work introduces a new method for computing the incentive Stackelberg solution. Stackelberg games are models for decision making situations, where the parties, called players, act in predetermined order. The first is called the leader and the others are followers. In an incentive game the leader can commit to a decision that depends on the followers' moves. This kind of a strategy is called...

Real-World networks have an inherently dynamic structure and are often composed of communities that are constantly changing in membership. Identifying these communities is of great importance when analyzing structural properties of networks. Hence, recent years have witnessed intense research in of solving the challenging problem of detecting such evolving communities. The mainstream approach t...

This paper investigates the ability of the largest producer in an electricity market to manipulate both the electricity and emission allowances markets to its advantage. A Stackelberg game to analyze this situation is constructed in which the largest firm plays the role of the leader, while the medium-sized firms are treated as Cournot followers with price-taking fringes that behave competitive...

Given a prediction of opponent behavior in a generalsum two-player normal form game, it is difficult to select a strategy that balances the opportunity to use the prediction to inform one’s action with the risk of becoming predictable. We propose Restricted Stackelberg Response with Safety (RSRS), a novel way of generating such a strategy. RSRS uses an r-safe Stackelberg equilibrium in a modifi...