In a recent paper Bagwell (1995) pointed out that only the Cournot outcome, but not the Stackelberg outcome, can be supported by a pure Nash equilibrium when actions of the Stackelberg leader are observed with the slightest error. The Stackelberg outcome, however, remains close to the outcome of a mixed equilibrium. We compare the predictions in various classes of evolutionary and learning proc...

These notes provide a brief introduction to the theory of noncooperative differential games. After the Introduction, Section 2 reviews the theory of static games. Different concepts of solution are discussed, including Pareto optima, Nash and Stackelberg equilibria, and the co-co (cooperative-competitive) solutions. Section 3 introduces the basic framework of differential games for two players....

The multi-leader-follower game can be looked on as a generalization of the Nash equilibrium problem and the Stackelberg game, which contains several leaders and a number of followers. Recently, the multi-leader-follower game has been drawing more and more attention, for example, in electricity power markets. However, when we formulate a general multi-leader-follower game as a single-level game,...

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...

-In view of the network resources allocation problem in network virtualization environment, combined with the Stackelberg game model, this paper proposes a resources allocation scheme that can satisfy the maximum utility of the substrate network and virtual network at the same time. Firstly, it designed a utility function of virtual network based on revenue and cost, and proved in the price of ...

The interaction between fiscal and monetary policy is analyzed by means of a game theoretical approach. The coordination between those two policies is essential, since decisions taken by one institution may have disastrous effects on the other one, resulting in welfare loss for the society. We derived optimal monetary and fiscal policies in context of three coordination schemes: when each insti...

There are currently three different game strategies to solve multi-criteria design problems: 1) Cooperative Games (Pareto Front), 2) Competitive Games (Nash Game) and 3) Hierarchical Games (Stackelberg Game). Nowadays EAs and Pareto front concept are more and more in solving practical design problems in industry, but this process is time consuming. Here, deterministic optimization method and Pa...

This paper, by comparing three potential energy trading systems, studies the feasibility of integrating a community energy storage (CES) device with consumer-owned photovoltaic (PV) systems for demand-side management of a residential neighborhood area network. We consider a fully-competitive CES operator in a non-cooperative Stackelberg game, a benevolent CES operator that has socially favorabl...

Recent applications of game theory in security domains use algorithms to solve a Stackelberg model, in which one player (the leader) first commits to a mixed strategy and then the other player (the follower) observes that strategy and bestresponds to it. However, in real-world applications, it is hard to determine whether the follower is actually able to observe the leader’s mixed strategy befo...