The Algorithm of Finding Equilibrium in the Class of Fully-mixed Strategies in the Logistics Market with Big Losses

Authors

  • Anna A. Sergeeva Saint Petersburg State University
  • Vladimir M. Bure Saint Petersburg State University

Abstract

The problem of customer optimal behavior in the service market where two service company operate to handling customer orders is considered. Each company has its own method of forming final cost of service order. The main peculiarity of considering problem is the presence of big customer losses if the lead time of fulfillment its order become very large. In this paper we formulate and prove the theorem for finding optimal strategies for players behavior when choosing a service provided with non-linearity of the loss function.

Keywords:

game-theoretical approach, optimal behavior, probability modeling, construction market, nonlinear penalty, n persons game, Nash equilibrium, the fully-mixed strategies

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References

Bure, V. M. (2002). Game-theoretic model of one queuing system. Vestnik St.-Peterb. univ., : Mathematics, mechanics, astronomy, 2(9), 3–5.

Bure, V. M., Sergeeva, A. A. (2011). Two firms competition at logistics market. Vestnik -Peterb. univ., : Mathematics, mechanics, astronomy. Serie 10, pp. 22–28.

Bure, V. M., Sergeeva, A. A. (2012). The game-theoretical model of selection services in company with various ordering schemes. Matematicheskaya teoriya igr i ee prilozheniya, T.2, V.3, pp. 14–38.

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Published

2022-08-22

How to Cite

Sergeeva, A. A. ., & Bure, V. M. . (2022). The Algorithm of Finding Equilibrium in the Class of Fully-mixed Strategies in the Logistics Market with Big Losses. Contributions to Game Theory and Management, 6. Retrieved from https://gametheory.spbu.ru/article/view/14238

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