• KSII Transactions on Internet and Information Systems (TIIS)
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• v.9 no.10
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• pp.3810-3830
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• 2015

In this paper, we investigate the differential game theoretic approach for distributed dynamic cooperative power control in cognitive radio ad hoc networks (CRANETs). First, a payoff function is defined by taking into consideration the tradeoff between the stock of accumulated power interference to the primary networks and the dynamic regulation of the transmit power of secondary users (SUs). Specifically, the payoff function not only reflects the tradeoff between the requirement for quickly finding the stable available spectrum opportunities and the need for better channel conditions, but also reveals the impact of the differentiated types of data traffic on the demand of transmission quality. Then the dynamic power control problem is modeled as a differential game model. Moreover, we convert the differential game model into a dynamic programming problem to obtain a set of optimal strategies of SUs under the condition of the grand coalition. A distributed dynamic cooperative power control algorithm is developed to dynamically adjust the transmit power of SUs under grand coalition. Finally, numerical results are presented to demonstrate the effectiveness of the proposed algorithm for efficient power control in CRANETs.

• IEMEK Journal of Embedded Systems and Applications
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• v.18 no.4
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• pp.195-201
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• 2023

The degree of contribution each sensor makes towards the total information gathered by all sensors is not uniform in spatially correlated sensor fields. Considering bit allocation problem in such a spatially correlated sensor field, the number of bits to be allocated to each sensor should be proportional to the degree of contribution the sensor makes. In this paper, we deploy Shapley value, a representative solution concept in cooperative game theory, and utilize it in order to quantify the degree of contribution each sensor makes. Shapley value is a system that determines the contribution of an individual player when two or more players work in collaboration with each other. To this end, we cast the bit allocation problem into a cooperative game called bit allocation game where sensors are regarded as the players, and a payoff function is given in the criteria of mutual information. We show that the Shapley value fairly quantifies an individual sensor's contribution to the total payoff achieved by all sensors following its desirable properties. By numerical experiments, we confirm that sensor that needs more bits to cover its area has larger Shapley value in spatially correlated sensor fields.

• Communications of the Korean Mathematical Society
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• v.32 no.2
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• pp.467-477
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• 2017

This paper is about the derivations of local volatilities for European quanto call option prices according to various types of payoffs. We derive the explicit formulas of local volatilities with constant foreign and domestic interest rates by adapting the method of Derman-Kani.

• Asian Journal of Business Environment
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• v.10 no.2
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• pp.5-15
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• 2020

Purpose: This study examines the impact of individual reciprocal preferences on coalition formation. The reciprocal model considers a player's own payoff, the player's perception of others' payoffs, and others' perceptions of the player's payoff. Research design, data and methodology: A reciprocal model is built to illustrate how reciprocity influences individual decisions in a coalition game and its formation. The prediction is examined with experimental evidences from a dictator game and a membership game. Results: The theoretical result suggests that the coalition formation could be unstable due to negative reciprocal kindness. The experimental findings support that negative reciprocal kindness could lead players participating in a coalition, no matter their dominant strategies are. When subjects were essential to make contributions to a coalition, they were more likely to cooperate if they were treated badly. In contrast, when subjects were unnecessary, the reciprocal kindness could enhance cooperative tendencies. Conclusions: This study reveals that the reciprocal behavior could influence individual decisions and reshape the coalition formation. In terms of policy implications, this study has shown that coalition formation could be reshaped by reciprocal prefe rences. Due to the strategic and complicated decision process in an interactive environment, a comprehensive investigation of factors would be required in a climate coalition in practice.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.9 no.9
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• pp.3312-3334
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• 2015

In this paper, a mechanism for spectrum allocation in overlay cognitive radio networks is proposed. In overlay cognitive radio networks, the secondary users (SUs) must first sense the activity of primary users (PUs) to identify unoccupied spectrum bands. Based on their different contributions for the spectrum sensing, the SUs get payoffs that are computed by the fusion center (FC). The unoccupied bands will be auctioned and SUs are asked to bid using payoffs they earned or saved. Coalitions are allowed to form among SUs because each SU may only need a portion of the bands. We formulate the coalition forming process as a coalition forming game and analyze it by game theory. In the coalition formation game, debtor-creditor relationship may occur among the SUs because of their limited payoff storage. A debtor asks a creditor for payoff help, and in return provides the creditor with a portion of transmission time to relay data for the creditor. The negotiations between debtors and creditors can be modeled as a Bayesian game because they lack complete information of each other, and the equilibria of the game is investigated. Theoretical analysis and numerical results show that the proposed auction yields data rate improvement and certain fairness among all SUs.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.2
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• pp.97-106
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• 2005

This paper presents a method for evaluating the nash equilibrium of the Cournot model for N-Gencos in wholesale electricity market. In wholesale electricity market, the strategies of N-Gencos can be applied to the game model under the conditions, which the Gencos determine their strategies to maximize their benefit. Generally, the Lemke algorithm has known as the approach to evaluate the mixed nash equilibrium in the only two-player game model. In this paper, we have developed the necessary condition for obtaining the mixed nash equilibrium of N-player by using the Lemke algorithms. However, it is difficult to find the mixed nash equilibrium of two more players by using the analytic method since those have the nonlinear characteristics. To overcome the above problem, we have formulated the object function satisfied with the proposed necessary conditions for N-player nash equilibrium and applied the modified particle swarm optimization (PSO) method to obtain the equilibrium for N-player. To present the effectiveness the proposed necessary condition and the evaluation approach, this paper has shown the results of equilibrium of sample system and the cournot game model for 3-players.

• Journal of the Korean Mathematical Society
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• v.43 no.2
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• pp.383-398
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• 2006

We consider a geometric Levy process for an underlying asset. We prove first that the option price is the unique solution of certain integro-differential equation without assuming differentiability and boundedness of derivatives of the payoff function. Second result is to provide convergence rate for option prices when the small jumps are removed from the Levy process.

• Journal of the Korean Operations Research and Management Science Society
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• v.22 no.3
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• pp.209-222
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• 1997

In this paper, we study a bargaining order problem where one buyer sequentially bargains with two sellers whose reservation prices are unknown to the buyer but correlated. Our main question is who the buyer should bargain first with to maximize his expected payoff. This type of problem is widely applicable to business and political situations where one party negotiates with multiple parties sequentially. One of the most important element in a sequential bargaining is "linkage effect" which exists when the aggreement of the previous bargaining affects the outcome of the following bargaining. To examine "linkage effect", we assume that the sellers'objects are similar so that the sellers' reservation prices are correlated. In addition, to consider incomplete information aspect regarding reservation prices, it is assumed that the sellers' reservation prices are unknown to the buyer. That is, we deal with one sided incomplete information case. In our model, there are two stages in each of which the buyer meets one seller. Since we are concerned with the bargaining order, we consider two different bargaining orders. Using game theory, we find a perfect Bayesian equilibrium and compute the buyer's expected payoff for each bargaining order. Finally we identify the advantageous bargaining order for the buyer by comparing the expected payoffs obtained under two different bargaining orders. Our results are as follows: the advantageous bargaining order depends on the prior probability of the seller type. However, in general, the buyer should bargain first with the seller whose object is less valuable to the buyer. The basic reason for our result is that the buyer wants to experiment in the first stage to find out the sellers' reservation prices and in doing so, to minimize the experimental cost and maximize potential gain in case of negotiation failure in the first stage. in the first stage.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.14 no.4
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• pp.1817-1836
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• 2020

Network convergence is considered as one of the key solutions to the problem of achieving future high-capacity and reliable communications. This approach overcomes the limitations of separate wireless technologies. Efficient interface selection is one of the most important issues in convergence networks. This paper solves the problem faced by users of selecting the most appropriate interface in the heterogeneous radio-access network (RAN) environment. Our proposed scheme combines a hierarchical evaluation of networks and game theory to solve the network-selection problem. Instead, of considering a fixed weight system while ranking the networks, the proposed scheme considers the service requirements, as well as static and dynamic network attributes. The best network is selected for a particular service request. To establish a hierarchy among the network-evaluation criteria for service requests, an analytical hierarchy process (AHP) is used. To determine the optimum network selection, the network hierarchy is combined with game theory. AHP attains the network hierarchy. The weights of different access networks for a service are calculated. It is performed by combining AHP scores considering user's experienced static network attributes and dynamic radio parameters. This paper provides a strategic game. In this game, the network scores of service requests for various RANs and the user's willingness to pay for these services are used to model a network-versus-user game. The Nash equilibria signify those access networks that are chosen by individual user and result maximum payoff. The examples for the interface selection illustrate the effectiveness of the proposed scheme.

• Journal of applied mathematics & informatics
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• v.5 no.1
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• pp.51-64
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• 1998

Conflict resolution methodology is discussed with fuzzified Pareto frontier. Four solution concepts namely the Nash solution the generalized nash solution the kalai-Smorodinsky concept and a solution method based on a special bargaining process are examined. The solutions are also fuzzy, the corresponding payoff values are fyzzy numbers the membership functions of which are determined. Three particular cases are considered in the paper. Linear quadratic, and general nonlinear pareto frontiers with known shape are examined.