Strong equilibria in game theory models and applications

Abstract

Game-theory approach is widely used in investigations of controlled systems in different fields of management. This is due to the universality of the games theory techniques and, in particular, principles of optimality. Implementation of an optimality principle in a game gains the optimal players' behavior. One of such optimality principles is strong equilibrium, which is stable against of deviations of any coalitions. This paper presents the game-theoretic formulation of inventory problem, competitive advertising, and so on. A technique for finding strong equilibria in one-step and differential games is considered.