• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.11
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• pp.630-635
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• 2004

Generation companies(Genco) submit the supply functions as a bidding function to a bid market in a competitive electricity market. The profits of Gencos vary in accordance with the bid functions, so the selection of a bidding function plays a key role in increasing their profits. In order to get a profitable bidding function which is usually linear, it is required to modify adequately the intersection and the slope of a linear supply function. This paper presents an analysis of the selection of the supply function from the viewpoint of Nash equilibrium(NE). Four types of bidding function parameters are used for analizing the electricity market. The competition of selecting bidding parameters is modeled as two level games in this research. One is a subgame where a certain type of parameters is given and the players compete to select values of the underlying parameters. The other is an overall game where the players compete to select a profitable type among the four types of parameters. The NEs in both games are computed by an using analytic method and a payoff matrix method. It is verified in case studies for the NE of overall game to satisfy the equilibrium condition.

• Journal of Communications and Networks
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• v.17 no.4
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• pp.440-448
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• 2015

In this paper, we study the problem of selfish behavior of secondary users (SUs) based on cognitive radio (CR) with the presence of primary users (PUs). SUs are assumed to contend on a channel using the carrier sense multiple access with collision avoidance (CSMA/CA) and PUs do not consider transmission of SUs, where CSMA/CA protocols rely on the random deference of packets. SUs are vulnerable to selfish attacks by which selfish users could pick short random deference to obtain a larger share of the available bandwidth at the expense of other SUs. In this paper, game theory is used to study the systematic cheating of SUs in the presence of PUs in multichannel CR networks. We study two cases: A single cheater and multiple cheaters acting without any restraint. We identify the Pareto-optimal point of operation of a network with multiple cheaters and also derive the Nash equilibrium of the network. We use cooperative game theory to drive the Pareto optimality of selfish SUs without interfering with the activity of PUs. We show the influence of the activity of PUs in the equilibrium of the whole network.

• Journal of the Korean Institute of Intelligent Systems
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• v.24 no.4
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• pp.379-384
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• 2014

This paper proposes a Cournot model that can be used to analyze the strategic behaviors of generation companies which try to maximize their profits in an imperfectly competitive electricity and carbon markets. The proposed model consists of two parts. First, the strategic behaviors of generation companies are modeled based on the Cournot theory. Second, the market operation is modeled based on the assumption that the market operator tries to maximize the total social welfare in consideration of environmental welfare. To find the Nash equilibrium of the proposed model, the two-level optimization technique is used. The proposed method has been applied to an illustrative example of oligopolistic markets. We found that the proposed method has strong potential to analyze the influence of the strategic biddings of the generation companies and the impact of renewable generator on markets where the competitiveness of the markets is not fully developed.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.10 no.5
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• pp.2286-2309
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• 2016

Overlay networks have been widely deployed upon the Internet by Service Providers (SPs) to provide improved network services. However, the interaction between each overlay and traffic engineering (TE) as well as the interaction among co-existing overlays may occur. In this paper, we adopt both non-cooperative and cooperative game theory to analyze these interactions, which are collectively called hybrid interaction. Firstly, we model a situation of the hybrid interaction as an n+1-player non-cooperative game, in which overlays and TE are of equal status, and prove the existence of Nash equilibrium (NE) for this game. Secondly, we model another situation of the hybrid interaction as a 1-leader-n-follower Stackelberg-Nash game, in which TE is the leader and co-existing overlays are followers, and prove that the cost at Stackelberg-Nash equilibrium (SNE) is at least as good as that at NE for TE. Thirdly, we propose a cooperative coalition mechanism based on Shapley value to overcome the inherent inefficiency of NE and SNE, in which players can improve their performance and form stable coalitions. Finally, we apply distinct genetic algorithms (GA) to calculate the values for NE, SNE and the assigned cost for each player in each coalition, respectively. Analytical results are confirmed by the simulation on complex network topologies.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.80-87
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• 2015

The proliferation of the Internet and communication technologies and applications, besides the conventional retailers, has led to a new form of distribution channel, namely home sopping through the telephone, TV, catalog or the Internet. The conventional and new distribution channels have different transaction costs perceived by the consumers in the following perspectives: the accessibility to the product information, the traffic cost and the opportunity cost for the time to visit the store, the possibility of 'touch and feel' to test the quality of the product, the delivery time and the concern for the security for the personal information. Difference in the transaction costs between the distribution channels results in the different selling prices even for the same product. Moreover, distribution channels with different selling prices necessarily result in different business surpluses. In this paper, we study the multilateral bargaining strategy of a manufacturer who sells a product through multiple distribution channels with different transaction costs. We first derive the Nash equilibrium solutions for both simultaneous and sequential bargaining games. The numerical analyses for the Nash equilibrium solutions show that the optimal bargaining strategy of the manufacturer heavily depends not only on the degree of competition between the distribution channels but on the difference of the business surpluses of the distribution channels. First, it is shown that there can be four types of locally optimal bargaining strategies if we assume the market powers of the manufacturer over the distribution channels can be different. It is also shown that, among the four local optimal bargaining strategies, simultaneous bargaining with the distribution channels is the most preferred bargaining strategy for the manufacturer.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.15 no.7
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• pp.2631-2649
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• 2021

Device-to-Device (D2D) communication is one of the enabling technologies for 5G networks that support proximity-based service (ProSe) for wireless network communications. This paper proposes a power control algorithm based on the Nash equilibrium and game theory to eliminate the interference between the cellular user device and D2D links. This leadsto reliable connectivity with minimal power consumption in wireless communication. The power control in D2D is modeled as a non-cooperative game. Each device is allowed to independently select and transmit its power to maximize (or minimize) user utility. The aim is to guide user devices to converge with the Nash equilibrium by establishing connectivity with network resources. The proposed algorithm with pricing factors is used for power consumption and reduces overall interference of D2Ds communication. The proposed algorithm is evaluated in terms of the energy efficiency of the average power consumption, the number of D2D communication, and the number of iterations. Besides, the algorithm has a relatively fast convergence with the Nash Equilibrium rate. It guarantees that the user devices can achieve their required Quality of Service (QoS) by adjusting the residual cost coefficient and residual energy factor. Simulation results show that the power control shows a significant reduction in power consumption that has been achieved by approximately 20% compared with algorithms in [11].

• East Asian Economic Review
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• v.21 no.2
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• pp.167-197
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• 2017

I build a small open economy (SOE) dynamic stochastic general equilibrium (DSGE) model to investigate the effect of a heterogeneous wage contract between regular and temporary workers on a macroeconomic volatility in a financially fragile economy. The imperfect financial market condition is captured by a quadratic financial adjustment cost for borrowing foreign assets, and the labor market friction is captured by a Nash bargaining process which is only available to the regular workers when they negotiate their wages with the firms while the temporary workers are given their wage which simply equals the marginal cost. As a result of impulse responsesto a domestic productivity shock, the higher elasticity of substitution between two types of workers and the lower weight on the regular workers in the firm's production process induce the higher volatilities in most variables. This is reasoned that the higher substitutability creates more volatile wage determination process while the lower share of the regular workers weakens their Nash bargaining power in the contract process.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.1
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• pp.19-32
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• 2002

This paper examines the effect of the producer-supplier quality contract parameters and the magnitude of the quality related variables on the quality of the final products. Our analysis focuses on the parties' equilibrium behavior In a quality game environment where the supplier should choose among the two production technologies, one requiring high cost but producing high quality Parts and the other requiring low cost but producing low quality parts and where the producer should decide whether to do the inspection of the parts. The game framework is employed to depict the potential conflicts existing between the Producer and the supplier because the Producer can not observe the supplier's choice and each party wants the other to bear the cost of producing high quality products. In our model, we specifically consider the competitive situation where the producer competes with a firm producing the same product. We employ the market share attraction model to Incorporate the competitive situation and completely characterize the equilibrium by using the Nash equilibrium concept for the game solution. Our results show that the equilibrium depends on the contract terms and the magnitude of the quality related variables. Compared to the non-competitive situation, the probability of producer's Inspection and the probability of supplier's choosing the high quality technology increases in a competitive situation. This is true even when the competitor's quality is lower than the producer's lowest. As a result, the quality of the final product increases In a competitive situation. And as the failure cost borne by the supplier increases, the probability of choosing the high quality technology Increases and the probability of inspection decreases. The net effect of this results in the decrease of the final product quality.

• Journal of Distribution Science
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• v.19 no.1
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• pp.61-73
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• 2021

Purpose: The transition from a traditional to a modern food distribution system induces several adjustments on the supply side since supermarkets must collect food on a larger scale and with higher quality standards. This situation becomes a real challenge for small scale farmers to access supply in a modern distribution channel. This gives rise to an original solution: supplying supermarkets through farmer associations or cooperatives. Based on this context of Vietnam linking to the case of distribution science, the paper proposes an industrial organization model of the food processing system in developing countries. The model presents the competitive relationship between two competing distribution systems: a traditional and a modern one. The former is composed of several retailers that sell their products on the traditional market while the latter is based on cooperatives that collect food and negotiate with supermarkets. The current study is to discuss the conditions under which the evolution of the food distribution system occurs by using the proposed model. Research design, data, and methodology: Based on the proposed model, the study explored the quantity flow from small producers to consumers through a Nash equilibrium and address the question of farmer repartition by a free-entry equilibrium. Results: The result shows that there is a unique positive equilibrium in the food market with participation of cooperative associations; Since farmers serve cooperative associations, they not only receive quantity incentive prices but also share profits within their organization. Conclusions: This study shows a unique distribution equilibrium where the profits of farmers working for middlemen and cooperatives are maximized. Further insights were discussed.

• Journal of Korea Port Economic Association
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• v.29 no.4
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• pp.73-95
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• 2013

This paper analyzes a competitive shipping market in East Asia in order to explore how container carriers make decisions on ship size, number of ships, service frequency, and service route. A sequential-move game based on non-cooperative game theory is applied to establish the models for the decision-makings involving the transportation volumes, freight rates, costs, and market shares of the service routes from Shanghai or Hong Kong to the ports in Busan, Gwangyang, and Incheon. According to the sub-game perfect Nash equilibrium solutions proposed by these models, carriers' decisions in such a competitive environment vary depending on sailing distance, transport demand, and freight rates. Therefore, carriers are recommended to reflect the optimal equilibrium solutions and a variety of decision factors when formulating strategies for transportation networks and operating fleets. Furthermore, ports should establish management strategies for these factors to provide optimal equilibrium solutions for carriers' transportation networks.