• Title/Summary/Keyword: Nash bargaining solution

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Strategic Analysis of the Multilateral Bargaining among the Manufacturer, the Online and the Offline Distribution Channels (제조업체, 온라인 유통채널 및 오프라인 유통채널 간의 다자간 협상전략에 관한 연구)

  • Cho, Hyung-Rae;Rhee, Minho;Lim, Sang-Gyu
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.37 no.4
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    • pp.145-153
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    • 2014
  • In this paper, we study the bargaining strategy of a manufacturer who sells a product through the online and offline distribution channels. To do this, we derive and analyze the equilibrium solutions for both simultaneous and sequential bargaining games. The result shows that the optimal bargaining strategy heavily depends on the size of the online distribution channel's loyal customers and the difference between the retail prices of the online and the offline distribution channels. It is also shown that, in some cases, the online distribution channel has incentive to downsize its loyal customers and its retail price for a better bargaining outcome.

Distributor's Multilateral Bargaining Strategy in the Vertically Differentiated Product Market (수직적으로 차별화된 제품시장 내에서 유통업체의 다자간 협상전략에 관한 연구)

  • Cho, Hyung-Rae;Rhee, Minho;Lim, Sang-Gyu
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.2
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    • pp.31-39
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    • 2015
  • In this paper, we study the bargaining strategy of a distributor who sells vertically differentiated, i.e. high and low brand products. We derive and analyze the equilibrium solutions for both simultaneous and sequential bargaining games among the distributor, the high brand product manufacturer and the low brand product manufacturer. The result shows that the optimal bargaining strategy for the distributor heavily depends on the relative quality and price level of the low brand product comparing to those of the high brand product. It is also shown that, for more bargaining profit, the distributor has strong motivation to prefer a low brand product which has lower quality level per unit price.

A study on the nash equilibrium of the price of insurance

  • Min, Jae-Hyung
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 1992.04b
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    • pp.403-412
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    • 1992
  • This note examines a situation where a risk-neutral insurer and a risk-averse individual (prospective insured) negotiate to reach an arbitration point of the price of insurance over the terms of an insurance contract in order to maximize their respective self-interests. The situation is modeled as a Nash bargaining problem. We analyze the dependence of the price of insurance, which is determined by the Nash solution, on the parameters such as the size of insured loss, the probability of a loss, the degree of risk-aversion of the insured, and the riskiness of loss distribution.

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Adaptive Load Balancing Algorithm of Ethereum Shard Using Bargaining Solution (협상 해법을 이용한 이더리움 샤드 부하 균형 알고리즘)

  • Baek, Dong Hwan;Kim, Sung Wook
    • KIPS Transactions on Computer and Communication Systems
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    • v.10 no.4
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    • pp.93-100
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    • 2021
  • The Ethereum shard system for solving the scalability problem of the blockchain has a load balancing issue, which is modeled as a graph partitioning problem. In this paper, we propose an adaptive online weighted graph partitioning algorithm that can negotiate between two utility of the shard system using the game theory's bargaining solution. The bargaining solution is an axiomatic solution that can fairly determine the points of conflict of utility. The proposed algorithm was improved to apply the existing online graph partitioning algorithm to the weighted graph, and load balancing was performed efficiently through the design considering the situation of the sharding system using the extension of Nash bargaining solution, which is extended to apply solution to non-convex feasible set of bargaining problem. As a result of the experiment, it showed up to 37% better performance than typical load balancing algorithm of shard system.

Game Theoretic Analysis for RFID Reader Collision (RFID 리더 주파수 간섭에 대한 게임 이론 관점에서의 해석)

  • Lee, Dong-Yul;Lee, Chae-Woo
    • Journal of the Institute of Electronics Engineers of Korea TC
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    • v.46 no.5
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    • pp.36-47
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    • 2009
  • There exists RFID reader-to reader frequency which can not recognize tag in dense reader nude because the interference causes low SIR. To solve this frequency, the many algorithms based on TDM have been proposed. But the most of existing algorithms not obtain the optimal time allocation but propose heuristic scheduling algorithm. In this paper, we apply game theory which deals with interest between players of game to RFID reader-to reader interference and analyze the time allocation problem of reader based on TDM in terms of cooperative game which the players bind agreements using Nash Bargaining Solution(NBS) and non-cooperative game which the players do not bind agreements using Nash Equilibrium(NE). The applied results show that in dense reader mode, NBS of cooperative game is superior to NE of non-cooperative game and present optimal time allocation in dense reader mode.

Resource Allocation for Cooperative Relay based Wireless D2D Networks with Selfish Users

  • Niu, Jinxin;Guo, Wei
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.9 no.6
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    • pp.1996-2013
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    • 2015
  • This paper considers a scenario that more D2D users exist in the cell, they compete for cellular resources to increase their own data rates, which may cause transmission interference to cellular users (CU) and the unfairness of resource allocation. We design a resource allocation scheme for selfish D2D users assisted by cooperative relay technique which is used to further enhance the users' transmission rates, meanwhile guarantee the QoS requirement of the CUs. Two transmission modes are considered for D2D users: direct transmission mode and cooperative relay transmission mode, both of which reuses the cellular uplink frequency resources. To ensure the fairness of resource distribution, Nash bargaining theory is used to determine the transmission mode and solve the bandwidth allocation problem for D2D users choosing cooperative relay transmission mode, and coalition formation game theory is used to solve the uplink frequency sharing problem between D2D users and CUs through a new defined "Selfish order". Through theoretical analysis, we obtain the closed Nash bargaining solution under CUs' rate constraints, and prove the stability of the formatted coalition. Simulation results show that the proposed resource allocation approach achieves better performance on resource allocation fairness, with only little sacrifice on the system sum rates.

Resource Allocation in Multiuser Multi-Carrier Cognitive Radio Network via Game and Supermarket Game Theory: Survey, Tutorial, and Open Research Directions

  • Abdul-Ghafoor, Omar B.;Ismail, Mahamod;Nordin, Rosdiadee;Shaat, Musbah M.R.
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.8 no.11
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    • pp.3674-3710
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    • 2014
  • In this tutorial, we integrate the concept of cognitive radio technology into game theory and supermarket game theory to address the problem of resource allocation in multiuser multicarrier cognitive radio networks. In addition, multiuser multicarrier transmission technique is chosen as a candidate to study the resource allocation problem via game and supermarket game theory. This tutorial also includes various definitions, scenarios and examples related to (i) game theory (including both non-cooperative and cooperative games), (ii) supermarket game theory (including pricing, auction theory and oligopoly markets), and (iii) resource allocation in multicarrier techniques. Thus, interested readers can better understand the main tools that allow them to model the resource allocation problem in multicarrier networks via game and supermarket game theory. In this tutorial article, we first review the most fundamental concepts and architectures of CRNs and subsequently introduce the concepts of game theory, supermarket game theory and common solution to game models such as the Nash equilibrium and the Nash bargaining solution. Finally, a list of related studies is highlighted and compared in this tutorial.

A Game Theoretic Cross-Layer Design for Resource Allocation in Heterogeneous OFDMA Networks

  • Zarakovitis, Charilaos C.;Nikolaros, Ilias G.;Ni, Qiang
    • IEIE Transactions on Smart Processing and Computing
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    • v.1 no.1
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    • pp.50-64
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    • 2012
  • Quality of Service (QoS) and fairness considerations are undoubtedly essential parameters that need to be considered in the design of next generation scheduling algorithms. This work presents a novel game theoretic cross-layer design that offers optimal allocation of wireless resources to heterogeneous services in Orthogonal Frequency Division Multiple Access (OFDMA) networks. The method is based on the Axioms of the Symmetric Nash Bargaining Solution (S-NBS) concept used in cooperative game theory that provides Pareto optimality and symmetrically fair resource distribution. The proposed strategies are determined via convex optimization based on a new solution methodology and by the transformation of the subcarrier indexes by means of time-sharing. Simulation comparisons to relevant schemes in the literature show that the proposed design can be successfully employed to typify ideal resource allocation for next-generation broadband wireless systems by providing enhanced performance in terms of queuing delay, fairness provisions, QoS support, and power consumption, as well as a comparable total throughput.

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A Study about Frequency Interference among Clusters with Game Theory (게임이론을 이용한 클러스터 간 주파수 간섭 문제 연구)

  • Shin, Hyun-Chul;Lee, Dong-Yul;Lee, Chae-Woo
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.35 no.2B
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    • pp.269-278
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    • 2010
  • In the clustering protocol, lifetime of the cluster members radically decrease because frequency interference between clusters make every cluster member consume a lot of energy to maintain or increase its transmission rate. In this paper, we analyze the frequency interference among the clusters with the game theory which deals with resource bargaining problems between players, and present a rational power allocation strategy. Both the cases that each cluster tries to selfishly occupy and cooperatively share the resource are analyzed in terms of non-cooperative and cooperative games. In simulation, we compare the cooperative game with non-cooperative game in terms of the node lifetime.

A Bandwidth Allocation Scheme using NBS in a Multiservice Networks (멀티서비스 네트워크에서 NBS를 이용한 대역폭 할당 기법)

  • Park, Jae-Sung
    • The Journal of The Korea Institute of Intelligent Transport Systems
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    • v.11 no.1
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    • pp.66-71
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    • 2012
  • In this paper, using the bargaining game theory, we propose a bandwidth management scheme that allocates bandwidth in an efficient and proportionally fair manner between the service classes with different service requirements. Since the traffic input rates of the classes are asymmetric in most of the time, the proposed scheme allocates bandwidth in proportion to the traffic input rates to increase the bandwidth utilization while protecting the quality of service of a class against the excessive traffic input of the other classes. In addition, the proposed method considers the weights of classes so that the bandwidth is allocated differentially among the classes.