Abstract
This paper presents a novel approach for computing the strong Stackelberg/Nash equilib-rium for Markov chains games. For solving the cooperative n-leaders and m-followers Markov game we consider the minimization of the Lp-norm that reduces the distance to the utopian point in the Euclidian space. Then, we reduce the optimization problem to find a Pareto optimal solution. We employ a bi-level programming method implemented by the extraproximal optimization approach for computing the strong Lp-Stackelberg/Nash equilibrium. We validate the proposed method theoretically and by a numerical experiment related to marketing strategies for supermarkets.
Original language | English |
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Pages (from-to) | 258-279 |
Number of pages | 22 |
Journal | Kybernetika |
Volume | 52 |
Issue number | 2 |
DOIs | |
State | Published - 2016 |
Keywords
- L-norm
- Markov chains
- Stackelberg and Nash
- Strong equilibrium