Recent applications of game theory in security domains use algorithms to solve a Stackelberg model, in which one player (the leader) first commits to a mixed strategy and then the other player (the follower) observes that strategy and bestresponds to it. However, in real-world applications, it is hard to determine whether the follower is actually able to observe the leader’s mixed strategy befo...

This paper formulates an integrated inventory model that allows Stackelberg game policy for optimizing joint total cost of a vendor and buyer system. After receiving the lot, the buyer commences an inspection process to determine the defective items. All defective items the buyer sends to vendor during the receiving of the next lot. Due to increasing number of shipments fixed and variable trans...

We consider a multiple access channel where the users choose their best power control strategy in order to selfishly maximize their energy-efficiency. To increase the utilities with respect to the classical non-cooperative game, we introduce hierarchy in two ways. On the one hand, assuming singleuser decoding at the receiver, we investigate a Stackelberg formulation of the game where one user i...

Game theory has become an important tools for making resource allocations decision in security domains, including critical infrastructure protection. Many of these games are formulated as Stackelberg security games. We present new analysis and algorithms for a class of Stackelberg security games with identical, fully protective defender resources. The first algorithm has worst-case complexity l...

Some game theory approaches to solve multiagent reinforcement learning in self play, i.e. when agents use the same algorithm for choosing action, employ equilibriums, such as the Nash equilibrium, to compute the policies of the agents. These approaches have been applied only on simple examples. In this paper, we present an extended version of Nash Q-Learning using the Stackelberg equilibrium to...

This paper presents a novel method to evaluate the economic feasibility of Fiber-to-the-Home networks resorting to state-of-the-art techniques. The method presented in this paper is a powerful combination of game theory, advanced capital budgeting algorithms with real options and Monte Carlo simulations with complex statistical distributions to evaluate project risk. Index Terms — FTTH, Game th...

This paper proposes a bi-level stochastic optimization problem (a Stackelberg game) to generate optimal bids for a profit maximizing hydropower producer and presents a mathematical approach to solve it. The first level represents the strategically acting hydropower producer also called a Stackelberg leader, while the second level represents the transmission system operator (TSO) also called a S...

Defender-Attacker Stackelberg games are the foundations of tools deployed for computing optimal patrolling strategies in adversarial domains such as the United states Federal Air Marshals Service and the United States Coast Guard, among others. In Stackelberg game models of these systems the attacker knows only the probability that each target is covered by the defender, but is oblivious to the...

The paper is concerned with Stackelberg solutions for a differential game with deterministic dynamics but random initial data, where the leading player can adopt a strategy in feedback form: u1 = u1(t, x). The first main result provides the existence of a Stackelberg equilibrium solution, assuming that the family of feedback controls u1(t, ·) available to the leading player are constrained to a...

Many multi-product firms incur a complexity fixed cost when offering different product lines in different quality tiers relative to the case when offering all products lines in the same quality tier (high or low). Such fixed costs create an interdependency between firms’choices of quality tiers across different product lines, even when demands are independent. We investigate the effects of this...