Game theoretic optimisation in process and energy systems engineering: A review

Game theory is a framework that has been used by various research fields in order to represent dynamic correlation among stakeholders. Traditionally, research within the process and energy systems engineering community has focused on the development of centralised decision making schemes. In the recent years, decentralised decision-making schemes have attracted increasing attention due to their ability to capture multi-stakeholder dynamics in a more accurate manner. In this article, we survey how centralised and decentralised decision making has been facilitated by game theoretic approaches. We focus on the deployment of such methods in process systems engineering problems and review applications related to supply chain optimisation problems, design and operations, and energy systems optimisation. Finally, we analyse different game structures based on the degree of cooperation and how fairness criteria can be employed to find fair payoff allocations

Demand Estimation at Manufacturer-Retailer Duo: A Macro-Micro Approach

This dissertation is divided into two phases. The main objective of this phase is to use Bayesian MCMC technique, to attain (1) estimates, (2) predictions and (3) posterior probability of sales greater than certain amount for sampled regions and any random region selected from the population or sample. These regions are served by a single product manufacturer who is considered to be similar to newsvendor. The optimal estimates, predictions and posterior probabilities are obtained in presence of advertising expenditure set by the manufacturer, past historical sales data that contains both censored and exact observations and finally stochastic regional effects that cannot be quantified but are believed to strongly influence future demand. Knowledge of these optimal values is useful in eliminating stock-out and excess inventory holding situations while increasing the profitability across the entire supply chain. Subsequently, the second phase, examines the impact of Cournot and Stackelberg games in a supply-chain on shelf space allocation and pricing decisions. In particular, we consider two scenarios: (1) two manufacturers competing for shelf space allocation at a single retailer, and (2) two manufacturers competing for shelf space allocation at two competing retailers, whose pricing decisions influence their demand which in turn influences their shelf-space allocation. We obtain the optimal pricing and shelf-space allocation in these two scenarios by optimizing the profit functions for each of the players in the game. Our numerical results indicate that (1) Cournot games to be the most profitable along the whole supply chain whereas Stackelberg games and mixed games turn out to be least profitable, and (2) higher the shelf space elasticity, lower the wholesale price of the product; conversely, lower the retail price of the product, greater the shelf space allocated for that product

A Game Theoretic Approach in Green Supply Chain Management

Common social issues are usually criticized considering the potential interrelationship between corporate social responsibility (CSR) and supply chain management. Companies and manufacturers in supply chain networks have been pressured by a growing concern for CSR from governments, organizations, and consumer, and have to bear at least some CSR under policies and regulations. However, naturally, members in a decentralized supply chain network make decisions to maximize their individual net profits. This thesis aims to allocate CSR to members in a non-integrated supply chain over time. Specifically, we formulate a model that crosses through multi-periods by a dynamic discreet Stackelberg game. We then apply control theory and calculus variations to obtain an equilibrium point at where both the profits of members and the level of CSR taken by Supply Chains are maximized. The findings of this thesis serve three subjects: supply chain management, social science, and game theory application

Investment Under Uncertainty, Market Evolution and Coalition Spillovers in a Game Theoretic Perspective.

The rationality assumption has been the center of neo-classical economics for more than half a century now. In recent years much research has focussed on models of bounded rationality. In this thesis it is argued that both full and bounded rationality can be used for different kind of problems. In the first part full rationality is assumed to analyse technology adoption by firms in a duopolistic and uncertain environment. In the second part, boundedly rational models are developed to study the evolution of market structure in oligopolistic markets as well as price formation on (possibly) incomplete financial markets. The third part of the thesis presents an alternative to the framework of Transferable Utility games in cooperative game theory. The model introduced here explicitly takes into account the outside options that players often have in real-life situations if they choose not to participate in a coalition.

複数の意思決定者を伴う線形確率システムにおけるH∞制約付き動的ゲーム

広島大学(Hiroshima University)博士(学術)Doctor of Philosophydoctora

A Comprehensive Insight into Game Theory in relevance to Cyber Security

The progressively ubiquitous connectivity in the present information systems pose newer challenges tosecurity. The conventional security mechanisms have come a long way in securing the well-definedobjectives of confidentiality, integrity, authenticity and availability. Nevertheless, with the growth in thesystem complexities and attack sophistication, providing security via traditional means can beunaffordable. A novel theoretical perspective and an innovative approach are thus required forunderstanding security from decision-making and strategic viewpoint. One of the analytical tools whichmay assist the researchers in designing security protocols for computer networks is game theory. Thegame-theoretic concept finds extensive applications in security at different levels, including thecyberspace and is generally categorized under security games. It can be utilized as a robust mathematicaltool for modelling and analyzing contemporary security issues. Game theory offers a natural frameworkfor capturing the defensive as well as adversarial interactions between the defenders and the attackers.Furthermore, defenders can attain a deep understanding of the potential attack threats and the strategiesof attackers by equilibrium evaluation of the security games. In this paper, the concept of game theoryhas been presented, followed by game-theoretic applications in cybersecurity including cryptography.Different types of games, particularly those focused on securing the cyberspace, have been analysed andvaried game-theoretic methodologies including mechanism design theories have been outlined foroffering a modern foundation of the science of cybersecurity