We study an agent-based stock market model with heterogeneous agents and friction. Our model is based on that of [9]: the process of a stock price in a discrete-time framework is determined by temporary equilibria via agents’ excess demand functions, and the diffusion approximation approach is applied to characterize the continuous-time limit (as transaction intervals shorten) as a solution of ...

In 1982, Drezner proposed the (1|1)-centroid problem on the plane, in which two players, called the leader and the follower, open facilities to provide service to customers in a competitive manner. The leader opens the first facility, and then the follower opens the second. Each customer will patronize the facility closest to him (ties broken in favor of the leader’s one), thereby decides the m...

Market share objectives are prominent in many industries, especially where managers pay much attention to league table rankings. This paper explores the strategic rationale for giving managers incentives based on market share, motivated by evidence from executive compensation practice in the automotive and investment banking industries. Strategic incentives for market share dominate the well-kn...

A large reduction in use of inpatient care combined with the incentives in the Affordable Care Act is leading to significant consolidation in the hospital industry. What was once a set of independent hospitals having arms-length relationships with physicians and clinicians who provide ambulatory care is becoming a small number of locally integrated health systems, generally built around large, ...

This paper proposes an optimization algorithm, the dimension-down iterative algorithm (DDIA), for solving a mixed transportation network design problem (MNDP), which is generally expressed as a mathematical programming with equilibrium constraint (MPEC). The upper level of the MNDP aims to optimize the network performance via both the expansion of the existing links and the addition of new cand...

Game theory is the study of mathematical models and cooperation between intelligent rational decision-makers. This paper provides a flexible model to calculate pay-off matrix based on several importance factors. This model is adapted by cooperative game and developed for some competitive advantages sections in pharmaceutical industry. An optimum solution is derived by considering Nash equilibri...