Citation
Yi Ouyang, Hamidreza Tavafoghi, Demos Teneketzis. "Dynamic oligopoly games with private Markovian dynamics". 54th IEEE Conference on Decision and Control (CDC), 2015.

Abstract
We analyze a dynamic oligopoly model with strategic sellers and buyers/consumers over a finite horizon. Each seller has private information described by a finite-state Markov process; the Markov processes describing the sellers' information are mutually independent. At the beginning of each time/stage t the sellers simultaneously post the prices for their good; subsequently, consumers make their buying decisions; finally, after the buyers' decisions are made, a public signal, indicating the buyers' consumption experience from each seller's good becomes available and the whole process moves to stage t + 1. The sellers' prices, the buyers' decisions and the signal indicating the buyers' consumption experience are common knowledge among buyers and sellers. This dynamic oligopoly model arises in online shopping and dynamic spectrum sharing markets. The model gives rise to a stochastic dynamic game with asymmetric information. Using ideas from the common information approach, we prove the existence of common information based equilibria. We obtain a sequential decomposition of the game and we provide a backward induction algorithm to determine common information-based equilibria that are perfect Bayesian equilibria. We illustrate our results with an example.

Electronic downloads

• http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=7403139

• HTML

  Yi Ouyang, Hamidreza Tavafoghi, Demos Teneketzis. <a
  href="http://www.cps-forces.org/pubs/154.html"
  >Dynamic oligopoly games with private Markovian
  dynamics</a>, 54th IEEE Conference on Decision and
  Control (CDC), 2015.

• Plain text

  Yi Ouyang, Hamidreza Tavafoghi, Demos Teneketzis.
  "Dynamic oligopoly games with private Markovian
  dynamics". 54th IEEE Conference on Decision and Control
  (CDC), 2015.

• BibTeX

  @inproceedings{OuyangTavafoghiTeneketzis15_DynamicOligopolyGamesWithPrivateMarkovianDynamics,
      author = {Yi Ouyang and Hamidreza Tavafoghi and Demos
                Teneketzis},
      title = {Dynamic oligopoly games with private Markovian
                dynamics},
      booktitle = {54th IEEE Conference on Decision and Control (CDC)},
      year = {2015},
      abstract = {We analyze a dynamic oligopoly model with
                strategic sellers and buyers/consumers over a
                finite horizon. Each seller has private
                information described by a finite-state Markov
                process; the Markov processes describing the
                sellers' information are mutually independent. At
                the beginning of each time/stage t the sellers
                simultaneously post the prices for their good;
                subsequently, consumers make their buying
                decisions; finally, after the buyers' decisions
                are made, a public signal, indicating the buyers'
                consumption experience from each seller's good
                becomes available and the whole process moves to
                stage t + 1. The sellers' prices, the buyers'
                decisions and the signal indicating the buyers'
                consumption experience are common knowledge among
                buyers and sellers. This dynamic oligopoly model
                arises in online shopping and dynamic spectrum
                sharing markets. The model gives rise to a
                stochastic dynamic game with asymmetric
                information. Using ideas from the common
                information approach, we prove the existence of
                common information based equilibria. We obtain a
                sequential decomposition of the game and we
                provide a backward induction algorithm to
                determine common information-based equilibria that
                are perfect Bayesian equilibria. We illustrate our
                results with an example.},
      URL = {http://cps-forces.org/pubs/154.html}
  }
  

Posted by Hamidreza Tavafoghi on 23 May 2016.
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