Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

Equilibrium Identification and Selection in IPGs

Authors: Tobias Crönert; Stefan Minner;

Equilibrium Identification and Selection in IPGs

Abstract

Problem definition: Integer programming games provide a framework to model (integer) decisions under competition. This has several applications ranging from decisions on competitive production volumes, over discrete capacity decisions among competitors to location selection under competition. The predominant solution concept for integer programming games in the literature is the identification of a Nash equilibrium; a strategy combination where no player benefits from unilaterally changing his/her strategy. While there are algorithms capable of identifying singular equilibria, they do not enumerate the full set of equilibria and thus cannot select the single most likely equilibrium. Methodology: Focusing on separable integer programming games, we propose a solution method in which we combine sampling techniques and equilibrium selection theory within an algorithm that integrates the determination of all equilibria and the subsequent identification of the most probable equilibrium among said equilibria. For this process, we use a column-generation approach, in which we divide the n-player integer programming game into a MIP-master problem capable of identifying equilibria in a sample, as well as column-generating subproblems tasked with the sampling of best responses and additional solution candidates. Results and managerial implications: We showcase algorithmic performance in various instances of knapsack games and large scale facility location and design games, including 3-player formulations. We highlight differences in solution quality between the proposed approach and the state of the art, enabling decision makers in competitive scenarios to base their actions on the most probable equilibrium rather than any identifiable equilibrium.

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    1
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!