The paper considers a two-echelon supply chain where a supplier determines his production quantity and a retailer chooses her order size and retail price for each period in an infinite horizon. Under a price-discount sharing (PDS) scheme, the supplier’s wholesale price linearly depends on the retail price. We develop a stochastic game in which these two supply chain members maximize their disco...

In a multi-unit market, a seller brings multiple units of a good and tries to sell them to a set of buyers equipped with monetary endowments. While a Walrasian equilibrium does not always exist in this model, natural relaxations of the concept that retain its desirable fairness properties do exist. We study the dynamics of (Walrasian) envy-free pricing algorithms in this environment, showing th...

In this paper, we conduct numerical experiments based upon the oligopolistic model of electricity market proposed in [1]-[2] and applied to the German electricity market. Presently, the German electricity market is shaped by strategic behavior of energy firms so that a perfect competition market has not been reached as yet. An oligopolistic market structure emerges from the analysis and is char...

We study formally two simple discrete bidding strategies in the context of iterative best response procedures, for the game induced by the Generalized Second Price keyword auction mechanism. These strategies have seen experimental evaluation in the recent literature as parts of best response procedures, which have been shown not to converge. Here we give a detailed definition of iterative best ...

This paper develops a machine learning-driven portfolio optimization framework for virtual bidding in electricity markets considering both risk constraint and price sensitivity. The algorithmic trading strategy is developed from the perspective of proprietary firm to maximize profit. A recurrent neural network-based Locational Marginal Price (LMP) spread forecast model by leveraging inter-hour ...

duopoly game theory is applied to the wood industrial markets (sawnwood and pulpwood markets) in the north of iran. the nash equilibrium and the dynamic properties of the system based on marginal adjustments are determined. the probability that the nash equilibrium will be reached is almost zero. the dynamical properties of sawnwood and pulpwood prices derived via the duopoly game model are fou...

Along with the prevalence of photovoltaic (PV) procurement contracts, corruption between auctioneers and potential electricity suppliers has attracted attention energy regulators. This study considers a corruption-proof environment wherein is strictly suppressed. It elaborates mechanism to explore impact measures on PV auctions. adopts incentive compatible constraints based revelation principle...

We study combinatorial auctions where each item is sold separately but simultaneously via a second price auction. We ask whether it is possible to efficiently compute in this game a pure Nash equilibrium with social welfare close to the optimal one. We show that when the valuations of the bidders are submodular, in many interesting settings (e.g., constant number of bidders, budget additive bid...