stackelberg games

Solving Multi-Leader-Follower Games

  • Sven Leyffer
  • Todd S. Munson
    • Categories Applications - OR and Management Sciences, Complementarity and Variational Inequalities, Constrained Nonlinear Optimization Tags , , , , , ,

    Multi-leader-follower games arise when modeling competition between two or more dominant firms and lead in a natural way to equilibrium problems with equilibrium constraints (EPECs). We examine a variety of nonlinear optimization and nonlinear complementarity formulations of EPECs. We distinguish two broad cases: problems where the leaders can cost-differentiate and problems with price-consistent followers. We … Read more

    Design and analysis of an approximation algorithm for Stackelberg network pricing

  • Patrice Marcotte
  • Sébastien Roch
  • Gilles Savard
    • Categories Combinatorial Optimization, Network Optimization Tags , , , ,

    We consider the problem of maximizing the revenue raised from tolls set on the arcs of a transportation network, under the constraint that users are assigned to toll-compatible shortest paths. We first prove that this problem is strongly NP-hard. We then provide a polynomial time algorithm with a worst-case precision guarantee of $\frac{1}{2}\log m_T+1$, where … Read more