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Register a new userA Hybrid Simulation-based Duopoly Game Framework for Analysis of Supply Chain and Marketing Activities
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Dong Xu
Publication date
2020
fields
Informatics Engineering
and research's language is
English
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A hybrid simulation-based framework involving system dynamics and agent-based simulation is proposed to address duopoly game considering multiple strategic decision variables and rich payoff, which cannot be addressed by traditional approaches involving closed-form equations. While system dynamics models are used to represent integrated production, logistics, and pricing determination activities of duopoly companies, agent-based simulation is used to mimic enhanced consumer purchasing behavior considering advertisement, promotion effect, and acquaintance recommendation in the consumer social network. The payoff function of the duopoly companies is assumed to be the net profit based on the total revenue and various cost items such as raw material, production, transportation, inventory and backorder. A unique procedure is proposed to solve and analyze the proposed simulation-based game, where the procedural components include strategy refinement, data sampling, gaming solving, and performance evaluation. First, design of experiment and estimated conformational value of information techniques are employed for strategy refinement and data sampling, respectively. Game solving then focuses on pure strategy equilibriums, and performance evaluation addresses game stability, equilibrium strictness, and robustness. A hypothetical case scenario involving soft-drink duopoly on Coke and Pepsi is considered to illustrate and demonstrate the proposed approach. Final results include P-values of statistical tests, confidence intervals, and simulation steady state analysis for different pure equilibriums.
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The operation of future intelligent transportation systems (ITSs), communications infrastructure (CI), and power grids (PGs) will be highly interdependent. In particular, autonomous connected vehicles require CI resources to operate, and, thus, communication failures can result in non-optimality in the ITS flow in terms of traffic jams and fuel consumption. Similarly, CI components, e.g., base stations (BSs) can be impacted by failures in the electric grid that is powering them. Thus, malicious attacks on the PG can lead to failures in both the CI and the ITSs. To this end, in this paper, the security of an ITS against indirect attacks carried out through the PG is studied in an interdependent PG-CI-ITS scenario. To defend against such attacks, the administrator of the interdependent critical infrastructure can allocate backup power sources (BPSs) at every BS to compensate for the power loss caused by the attacker. However, due to budget limitations, the administrator must consider the importance of each BS in light of the PG risk of failure, while allocating the BPSs. In this regard, a rigorous analytical framework is proposed to model the interdependencies between the ITS, CI, and PG. Next, a one-to-one relationship between the PG components and ITS streets is derived in order to capture the effect of the PG components failure on the optimality of the traffic flow in the streets. Moreover, the problem of BPS allocation is formulated using a Stackelberg game framework and the Stackelberg equilibrium (SE) of the game is characterized. Simulation results show that the derived SE outperforms any other BPS allocation strategy and can be scalable in linear time with respect to the size of the interdependent infrastructure.
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