in this paper, a high-order and conditionally stable stochastic difference scheme is proposed for the numerical solution of $rm ithat{o}$ stochastic advection diffusion equation with one dimensional white noise process. we applied a finite difference approximation of fourth-order for discretizing space spatial derivative of this equation. the main properties of deterministic difference schemes,...

The paradigm of randomly-furcating stochastic differential games incorporates additional stochastic elements via randomly branching payoffs in stochastic differential games. This paper considers dynamically stable cooperative solutions in randomly furcating stochastic differential games. Analytically tractable payoff distribution procedures contingent upon specific random realizations of the st...

In [15], the stochastic-game-analogue of Shepp and Shiryaev’s optimal stopping problem (cf. [23] and [24]) was considered when driven by an exponential Brownian motion. We consider the same stochastic game, which we call the Shepp–Shiryaev stochastic game, but driven by a spectrally negative Lévy process and for a wider parameter range. Unlike [15], we do not appeal predominantly to stochastic ...

Two-person zero-sum stochastic games with finite state and action spaces are considered. The expected average payoff criterion is used for multichain structures. In the special caae that only one player controls the transitions, it is shown that the optimal stationary policies and the value of the game can be obtained from the optimal solutions to a pair of dual linear programs. A decomposition...

Remanufactured products offer better environmental benefits, and governments encourage manufacturers to remanufacture through various subsidy policies. This practice has shown that, in addition to product sales, remanufactured product can also achieve its value through social donation. Based on the remanufactured product value realization approaches, governments provide two kinds of incentive p...

A selfish routing game is a simple model of selfish behaviors in networks. It is called that Braess’s paradox occurs in the selfish routing game if an equilibrium flow achieved by players’ selfish behaviors is not the optimal minimum latency flow. In order to make the minimum latency flow a Nash equilibrium, a marginal cost tax has been proposed. Braess graphs have also been proposed to discuss...

S upply disruptions are all too common in supply chains. To mitigate delivery risk, buyers may either source from multiple suppliers or offer incentives to their preferred supplier to improve its process reliability. These incentives can be either direct (investment subsidy) or indirect (inflated order quantity). In this study, we present a series of models to highlight buyers’ and suppliers’ o...