Core-selecting combinatorial auctions have been introduced as an alternative to the Vickrey-Clarke-Groves (VCG) mechanism because VCG results in payments that are not in the core with respect to bids, leading to unfair payments, unacceptably low revenues, and unstable outcomes. This raises an auction selection problem for an auctioneer deciding whether to employ a core-selecting auction or VCG ...

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...

We study an oligopoly consisting of M leaders and N followers that supply a homogeneous product (or service) noncooperatively. Leaders choose their supply levels first, knowing the demand function only in distribution. Followers make their decisions after observing the leader supply levels and the realized demand function. We term the resulting equilibrium a stochastic multiple-leader Stackelbe...

Motivated by applications to data networks where fast convergence is essential, we analyze the problem of learning in generic N-person games that admit a Nash equilibrium in pure strategies. Specifically, we consider a scenario where players interact repeatedly and try to learn from past experience by small adjustments based on local – and possibly imperfect – payoff information. For concretene...

We study Nash equilibrium in two-settlement competitive electricity markets with horizontal market power, flow congestion, demand uncertainties and probabilistic system contingencies. The equilibrium is formulated as a stochastic Equilibrium Problem with Equilibrium Constraints (EPEC) in which each firm solves a stochastic Mathematical Program with Equilibrium Constraints (MPEC). We assume a no...

A non-cooperative model of network formation is developed. Link formation is one-sided. Information flow is two-way. The model builds on the work of Bala and Goyal who permit links to fail with a certain common probability. In our model the probability of failure can be different for different links. The set of networks which are Nash for suitably chosen model parameters consists of all essenti...