• Title/Summary/Keyword: cooperative game theory

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The Proportional Method for Inventory Cost Allocation (재고비용할당을 위한 비례적 접근법)

  • Lee, Dongju
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.41 no.4
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    • pp.220-227
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    • 2018
  • The cooperative game theory consists of a set of players and utility function that has positive values for a subset of players, called coalition, in the game. The purpose of cost allocation method is to allocate the relevant cost among game players in a fair and rational way. Therefore, cost allocation method based on cooperative game theory has been applied in many areas for fair and reasonable cost allocation. On the other hand, the desirable characteristics of the cost allocation method are Pareto optimality, rationality, and marginality. Pareto optimality means that costs are entirely paid by participating players. Rationality means that by joining the grand coalition, players do not pay more than they would if they chose to be part of any smaller coalition of players. Marginality means that players are charged at least enough to cover their marginal costs. If these characteristics are all met, the solution of cost allocation method exists in the core. In this study, proportional method is applied to EOQ inventory game and EPQ inventory game with shortage. Proportional method is a method that allocates costs proportionally to a certain allocator. This method has been applied to a variety of problems because of its convenience and simple calculations. However, depending on what the allocator is used for, the proportional method has a weakness that its solution may not exist in the core. Three allocators such as demand, marginal cost, and cost are considered. We prove that the solution of the proportional method to demand and the proportional method to marginal cost for EOQ game and EPQ game with shortage is in the core. The counterexample also shows that the solution of the proportional method to cost does not exist in the core.

US-China Trade War and Game Theory in Asymmetric Bargaining Power (미중 무역전쟁과 게임이론: 협상력 비대칭 상황에서의 협조적 균형 가능성)

  • Kim, Hong-Youl
    • Korea Trade Review
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    • v.44 no.3
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    • pp.105-121
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    • 2019
  • This study applies diverse game theories to the US-China Trade War. The US-China Trade War can be analyzed as a game situation because the strategic decision-making process to maximize one's profit while considering the reaction of the other party is a game situation. However, related research suffered from some mistakes in applying the US-China Trade War as it is to classic game theory, because while the prisoners dilemma is based on the situation of No Communication, No Trust, No Cooperation, the US-China Trade War has a precondition different from that of prisoners dilemma, since it mutually communicates information and negotiation is repeated several times in a cooperative situation. The result of the trade negotiation will likely end as 'cooperate-cooperate'. Further, considering trade volume, trade interdependence, bargaining power based on economy, and the scale of damage caused by the Trade War, the US-China Trade War is progressing with the bargaining power of the US being higher than that of China. Since the current US-China Trade War is in an asymmetrical situation under the dominant bargaining power of the US, it is likely to reach 'US defect-China cooperative' in the long run.

A Game Theoretic Study of Energy Efficient Cooperative Wireless Networks

  • Brown, Donald Richard III;Fazel, Fatemeh
    • Journal of Communications and Networks
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    • v.13 no.3
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    • pp.266-276
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    • 2011
  • In wireless networks, it is well-known that intermediate nodes can be used as cooperative relays to reduce the transmission energy required to reliably deliver a message to an intended destination. When the network is under a central authority, energy allocations and cooperative pairings can be assigned to optimize the overall energy efficiency of the network. In networks with autonomous selfish nodes, however, nodes may not be willing to expend energy to relay messages for others. This problem has been previously addressed through the development of extrinsic incentive mechanisms, e.g., virtual currency, or the insertion of altruistic nodes in the network to enforce cooperative behavior. This paper considers the problem of how selfish nodes can decide on an efficient energy allocation and endogenously form cooperative partnerships in wireless networks without extrinsic incentive mechanisms or altruistic nodes. Using tools from both cooperative and non-cooperative game theory, the three main contributions of this paper are (i) the development of Pareto-efficient cooperative energy allocations that can be agreed upon by selfish nodes, based on axiomatic bargaining techniques, (ii) the development of necessary and sufficient conditions under which "natural" cooperation is possible in systems with fading and non-fading channels without extrinsic incentive mechanisms or altruistic nodes, and (iii) the development of techniques to endogenously form cooperative partnerships without central control. Numerical results with orthogonal amplify-and-forward cooperation are also provided to quantify the energy efficiency of a wireless network with sources selfishly allocating transmission/relaying energy and endogenously forming cooperative partnerships with respect to a network with centrally optimized energy allocations and pairing assignments.

D2D Power Control in the Cellular System: Non Cooperative Game Theoretic Approach

  • Oh, Changyoon
    • Journal of the Korea Society of Computer and Information
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    • v.23 no.3
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    • pp.25-31
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    • 2018
  • In this paper, we consider the game theoretic approach to investigate the transmit power optimization problem where D2D users share the uplink of the cellular system. Especially, we formulate the transmit power optimization problem as a non cooperative power control game. In the user wide sense, each user may try to select its transmit power level so as to maximize its utility in a selfish way. In the system wide, the transmit power levels of all users eventually converge to the unique point, called Nash Equilibrium. We first formulate the transmit power optimization problem as a non cooperative power control game. Next, we examine the existence of Nash Equilibrium. Finally, we present the numerical example that shows the convergence to the unique transmit power level.

Power Control Scheme Based on Non-Cooperative Game in a Heterogeneous Network (이종 네트워크에서의 비협력 게임 기반 전력 할당 기법)

  • Bae, Insan;Lee, Jinnyoung;Jang, Sungjin;Kim, Jaemoung
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.39B no.11
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    • pp.771-778
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    • 2014
  • We propose Femto-cell power control scheme in HeNet with Game Theory. The Femto-cell which provide high quality with low power is issued by many benefits, however there is a bunch of interferences when many Femto-cells use overlapped bandwidth with Macro-cell. We defined base station of cellular networks and mobile users as players of Game Theory, and configured interference effect among each other as power utility function. Futhermore, we showed enhanced overall system performance, lower power usage and interference decrease by using optimal power.

D2D Utility Maximization in the Cellular System: Non Cooperative Game Theoretic Approach

  • Oh, Changyoon
    • Journal of the Korea Society of Computer and Information
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    • v.24 no.7
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    • pp.79-85
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    • 2019
  • We investigate the D2D utility maximization in the cellular system. We focus on the non cooperative game theoretic approach to maximize the individual utility. Cellular system's perspective, interference from the D2D links must be limited to protect the cellular users. To accommodate this interference issue, utility function is first defined to control the individual D2D user's transmit power. More specifically, utility function includes the pricing which limits the individual D2D user's transmit power. Then, non cooperative power game is formulated to maximize the individual utility. Distributed algorithm is proposed to maximize the individual utility, while limiting the interference. Convergence of the proposed distributed algorithm is verified through computer simulation. Also the effect of pricing factor to SIR and interference is provided to show the performance of the proposed distributed algorithm.

Analysis of the Success Factors of Open Innovation fromthe Perspective of Cooperative Game Theory: Focusing on the Case of Collaboration Between Korean Large Company 'G' and Startup 'S' (협조적 게임이론 관점에서 본 대기업-스타트업 개방형 혁신 성공 요인 분석: 대기업 'G사'와 스타트업 'S사'의 협업 사례를 중심으로)

  • Jinyoung Kim;Jaehong Park;Youngwoo Sohn
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.19 no.2
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    • pp.159-179
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    • 2024
  • Based on the case of collaboration between large companies and startups, this study suggests the importance of establishing mutual cooperation and trust relationships for the success of open innovation strategy from the perspective of cooperative game theory. It also provides implications for how this can be implemented. Due to information asymmetry and differences in organizational culture and decision-making structures between large companies and startups, collaboration is likely to proceed in the form of non-cooperative games among players in general open innovation, leading to the paradox of open innovation, which lowers the degree of innovation. Accordingly, this study conducted a case study on collaboration between large company 'G' and startup 'S' based on the research question "How did we successfully promote open innovation through cooperative game-type collaboration?" The study found that successful open innovation requires (1) setting clear collaboration goals to solve the organizational problem between large companies and startups, (2) supporting human resources for qualitative growth of startups to solve reliability problems, (3) leading to strategic investment and joint promotion of new projects to solve the profit distribution problem. This study is significant in that it contributes to expanding the discussion of the success factors of open innovation to the importance of interaction and strategic judgment considering the organizational culture and decision-making structure among players, and empirically confirming the success conditions of open innovation from the perspective of cooperative game theory.

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Performance Comparison among Bandwidth Allocation Schemes using Cooperative Game Theory (협력 게임 이론을 이용한 대역폭 할당 기법의 성능 비교)

  • Park, Jae-Sung;Lim, Yu-Jin
    • The KIPS Transactions:PartC
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    • v.18C no.2
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    • pp.97-102
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    • 2011
  • Since the game theory provides a theoretical ground to distribute a shared resource between demanding users in a fair and efficient manner, it has been used for the bandwidth allocation problem in a network. However, the bandwidth allocation schemes with different game theory assign different amount of bandwidth in the same operational environments. However, only the mathematical framework is adopted when a bandwidth allocation scheme is devised without quantitatively comparing the results when they applied to the bandwidth allocation problem. Thus, in this paper, we compare the characteristics of the bandwidth allocation schemes using the bankrupt game theory and the bargaining game theory when they applied to the situation where nodes are competing for the bandwidth in a network. Based on the numerical results, we suggest the future research direction.

GAME MODEL AND ITS SOLVING METHOD FOR OPTIMAL SCALE OF POWER PLANTS ENTERING GENERATION POWER MARKET

  • Tan, Zhongfu;Chen, Guangjuan;Li, Xiaojun
    • Journal of applied mathematics & informatics
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    • v.26 no.1_2
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    • pp.337-347
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    • 2008
  • Based on social welfare maximum theory, the optimal scale of power plants entering generation power market being is researched. A static non-cooperative game model for short-term optimization of power plants with different cost is presented. And the equilibrium solutions and the total social welfare are obtained. According to principle of maximum social welfare selection, the optimization model is solved, optimal number of power plants entering the market is determined. The optimization results can not only increase the customer surplus and improve power production efficiency, but also sustain normal profits of power plants and scale economy of power production, and the waste of resource can also be avoided. At last, case results show that the proposed model is efficient.

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A Generous Cooperative Routing Protocol for Vehicle-to-Vehicle Networks

  • Li, Xiaohui;Wang, Junfeng
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.10 no.11
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    • pp.5322-5342
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    • 2016
  • In vehicle-to-vehicle (V2V) networks, where selfishness degrades node activity, countermeasures for collaboration enforcement must be provided to enable application of a sage and efficient network environment. Because vehicular networks feature both high mobility and various topologies, selfish behavior judgment and establishment of a stable routing protocol become intensely challenging. In this paper, a two-phase-based generous cooperative routing protocol (called GEC) is presented for V2V networks to provide resistance to selfishness. To detect selfish behaving vehicles, a packet forwarding watchdog and an average connection rate based on the multipath weight method are used, where evidence is gathered from different watchdogs. Then, multihop relay decisions are made using a generous cooperative algorithm based on game theory. Finally, through buffering of the multiple end-to-end paths and judicious choice of optimal cooperative routes, route maintenance phase is capable of dealing with congestion and rapidly exchanging traffic. Specifically, it is proved that the GEC is theoretically subgame perfect. Simulation results show that for V2V networks with inherently selfish nodes, the proposed method isolates uncooperative vehicles and is capable of accommodating both the mobility and congestion circumstances by facilitating information dissemination and reducing end-to-end delay.