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IN ABSTRACT CONVEX SPACES

MONICA PATRICHE

Communicated by the former editorial board

In this paper, we use the minimax inequalities obtained by S. Park (2011) to prove the existence of weighted Nash equilibria and Pareto Nash equilibria of a multiobjective game defined on abstract convex spaces.

AMS 2010 Subject Classification: 47H10, 55M20, 91B50.

Key words:minimax inequality, weighted Nash equilibria, Pareto Nash equilibria, multiobjective game, abstract convex space.

1. INTRODUCTION

Recently, S. Park [8] introduced a new concept of abstract convex space and several classes of correspondences having the KKM property. With this new concept, the KKM type correspondences were used to obtain coincidence theorems, fixed point theorems and minimax inequalities. S. Park generalizes and unifies most important results in the KKM theory on G-convex spaces, H-spaces, and convex spaces (for example, see [8–13]).

For the history of KKM literature, we must mention Ky Fan [3], who extended the original KKM theorem to arbitrarily topological vector space.

The property of close-valuedness of related KKM correspondences was replaced with more general concepts. In [7], Luc et al. have introduced the concept of intersectionally closed-valued correspondences and in [13], S. Park has obtained new KKM type theorems for this kind of KKM correspondences.

In this paper, we use the minimax inequalities obtained by S. Park in [13]

to prove the existence of weighted Nash equilibria and Pareto Nash Equilibria of a multiobjective game defined on abstract convex spaces. For the history of minimax theorems, I also must mention the name of Ky Fan (see [4]). Among the authors who studied the existence of Pareto equilibria in game theory with vector payoffs, I emphasize S. Chebbi [2], W.K. Kim [5], W.K. Kim, X.P. Ding [6], H. Yu [16], J. Yu, G.X.-Z Yuan [17], X.Z. Yuan, E. Tarafdar [18]. A reference work is the paper of M. Zeleny [19]. The approaches of the above-mentioned authors deal with the Ky Fan minimax inequality, quasi-equilibrium theorems

MATH. REPORTS16(66),2(2014), 243–252

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or quasi-variational inequalities. We must mention the papers of P. Borm, F.

Megen, S. Tijs [1], who introduced the concept of perfectness for multicriteria games and M. Voorneveld, S. Grahn, M. Dufwenberg [14], who studied the existence of ideal equilibria. Other authors, as H. Yu (see [16]), obtained the existence of a solution of multiobjective games by using new concepts of continuity and convexity.

The paper is organised as follows: In section 2, some notation, termino- logical convention, basic definitions and results about abstract convex spaces and minimax inequalities are given. Section 3 introduces the model, that is, a multiobjective game defined on an abstract convex space and the concept of weight Nash equilibrium. Section 4 contains existence results for weight Nash equilibrium and Pareto Nash equilibrium.

2.ABSTRACT CONVEX SPACES AND MINIMAX INEQUALITIES

Let A be a subset of a topological spaceX. 2A denotes the family of all subsets of A. A denotes the closure of A in X and intA denotes the interior of A. If A is a subset of a vector space, coA denotes the convex hull of A.

If F, G : X → 2Y are correspondences, then coG, cl G, G∩F : X → 2Y are correspondences defined by (coG)(x) =coG(x), (clG)(x) =clG(x) and (G∩ F)(x) =G(x)∩F(x) for eachx ∈X, respectively. The graph of F :X →2Y is the set Gr(F) ={(x, y)∈X×Y |y∈F(x)}and F :Y →2X is defined by F(y) ={x ∈X :y ∈F(x)} for y ∈Y. LetF(A) be the set of all nonempty finite subsets of a setA.

For the reader’s convenience, we review a few basic definitions and results from abstract convex spaces.

Definition 1 ([13]). Let X be a topological space, D be a nonempty set and let Γ :F(D)→2X be a correspondence with nonempty values ΓA= Γ(A) forA∈ F(D).The family (X, D; Γ) is called an abstract convex space.

Definition 2 ([13]).For a nonempty subsetD0ofD, we define the Γ-convex hull of D0, denoted by coΓD0, as coΓD0=∪{ΓA:A∈ F(D0)} ⊂X.

Definition 3 ([13]). Given an abstract convex space (X, D,Γ), a nonempty subset Y of X is called to be a Γ-convex subset of (X, D,Γ) relative to D0 if for any A∈ F(D0), we have ΓA⊂Y, that is, coΓD0⊂Y.

Definition 4 ([13]).When D ⊂X in (X, D,Γ), a subset Y of X is said to be Γ-convex if coΓ(Y ∩D) ⊂Y; in other words, Y is Γ-convex relative to D0 =Y ∩D.In case X=D,let (X,Γ) = (X, X,Γ).

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Definition 5 ([13]). The abstract convex space (X, D,Γ) is calledcompact ifX is compact.

We have abstract convex subspaces as the following simple observation.

Proposition 1. For an abstract convex space (X, D,Γ) and a nonempty subset D0 of D, let Y be a Γ-convex subset ofX relative to D0 and Γ0 :F(D0)

→2Y a correspondence defined by Γ0A= ΓA⊂X for A∈ F(D0).

Then (Y, D00) itself is an abstract convex space called a subspace rela- tive to D0.

The following result is known.

Lemma1 ([12]). Let (Xi, Dii)i∈Ibe any family of abstract convex spaces.

Let X =Q

i∈IXi be equipped with the product topology andD=Q

i∈IDi. For each i ∈ I, let πi : D → Di be the projection. For each A ∈ F(D), define Γ(A) =Q

i∈IΓii(A)). Then (X, D,Γ) is an abstract convex space.

Definition 6 ([13]). Let (X, D,Γ) be an abstract convex space. ThenF : D→2X is called aKKM correspondence if it satisfies ΓA⊂F(A) :=∪y∈AF(y) for all A∈ F(D).

Definition 7 ([13]).The partial KKM principle for an abstract convex space (X, D,Γ) is the statement that, for any closed-valued KKM correspon- dence F :D→2X, the family {F(z)}z∈D has the finite intersection property.

TheKKM principle is the statement that the same property also holds for any open-valued KKM correspondence.

An abstract convex space is called a KKM space if it satisfies the KKM principle.

Proposition2. Let (X, D,Γ) be an abstract convex space and (X, D00) a subspace. If (X, D,Γ) satisfies the partial KKM principle, then so does (X, D00).

Let (X, D,Γ) be an abstract convex space.

Definition 8 ([13]).The function f :X → R is said to be quasiconcave (resp., quasiconvex) if {x ∈ X : f(x) > r} (resp., {x ∈ X : f(x) < r} is Γ-convex for eachr ∈R.

In [7], Luc et al. have introduced the concept of intersectionally closed- valued correspondences.

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Definition 9.Let F :D→2X be a correspondence.

(i) [7] F is intersectionally closed-valued if∩z∈DF(z) =∩z∈DF(z);

(ii) F istransfer closed-valued if∩z∈DF(z) =∩z∈DF(z);

(iii) [7] F is unionly open-valued if Int∪z∈DF(z) =∪z∈DIntF(z);

(iv) F istransfer open-valued if∪z∈DF(z) =∪z∈DIntF(z);

Lucet al. [7] noted that (ii)⇒(i).

Proposition 3 ([7]). The correspondence F is intersectionally closed- valued (resp. transfer closed-valued) if only if its complement FC is unionly open-valued (resp. transfer open-valued).

Definition 10 ([13]). LetY be a subset ofX.

(i)Y is said to beintersectionally closed (resp.,transfer closed) if there is an intersectionally (resp., transfer) closed-valued correspondence F :D→2X such that Y =F(z) for some z∈D.

(ii)Y is said to beunionly open(resp.,transfer open) if there is an unionly (resp., transfer) open-valued correspondence F :D→ 2X such that Y =F(z) for somez∈D.

S. Park gives in [13] the concept of generally lower (resp., upper) semi- continuous function.

Definition 11 ([13]). The function f :D×X →Ris said to be generally lower (resp. upper) semicontinuous (g.l.s.c.) (resp., g.u.s.c.) onX whenever, for each z ∈ D, {y ∈ X : f(z, y) ≤ r} (resp., {y ∈ X : f(z, y) ≥ r}) is intersectionally closed for each r∈R.

The aim of this paper is to prove the existence of a weighted Nash equi- librium for a multicriteria game defined in the framework of abstract convex spaces. For our purpose, we need the following theorem (variant of Theorem 6.3 in [13]).

Theorem 1 (Minimax inequality, [13]). Let (X, D = X,Γ) an abstract convex space satisfying the partial KKM principle, f, g:X×X→Rextended real-valued functions and γ ∈R such that

(i) for each x∈X, g(x, x)≤γ;

(ii) for each y ∈ X, F(y) = {x ∈ X : f(x, y) ≤ γ} is intersectionally closed (resp. transfer closed);

(iii) for each x∈X, coΓ{y ∈X:f(x, y)> γ} ⊂ {y∈X :g(x, y)> γ};

(iv) the correspondence F :X→2X satisfies the following condition:

there exists a nonempty compact subset K of X such that either (a) K⊃ ∩{F(y) :y∈M} for some M ∈ F(X); or

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(b)for each N ∈ F(X),there exists a compact Γ-convex subset LN of X relative to some X0 ⊂X such that N ⊂X0 and K⊃LN∩ ∩y∈X0F(y)6=φ.

Then

1) there exists a x0 ∈X (resp., x0 ∈ K) such that f(x0, y) ≤ γ for all y∈X;

2) if γ := supx∈Xg(x, x), then we have infx∈Xsupy∈Xf(x, y)≤supx∈Xg(x, x).

For the case whenX=D(we are concerned with compact abstract spaces (X,Γ) satisfying the partial KKM principle), we have the following variants of the corollaries stated in [13].

Corollary 1 ([13]). Let f, g :X×X →Rbe real-valued functions and γ ∈Rsuch that

(i) for each x, y∈X, f(x, y)≤g(x, y) and g(x, x)≤γ;

(ii) for each y∈X, {x∈X:f(x, y)> γ} is unionly open in X;

(iii) for each x∈X, {y∈X :g(x, y)> γ} is Γ-convex on X;

Then

1) there exists a x0 ∈X such that f(x0, y)≤γ for all y ∈X;

2) if γ := supx∈Xg(x, x), then we have infx∈Xsupy∈Xf(x, y)≤supx∈Xg(x, x).

Corollary 2 ([13]). Let f, g:X×X→R be functions such that (i) for each x, y∈X, f(x, y)≤g(x, y) andg(x, x)≤γ;

(ii) for each y∈X, f(·, y) is g.l.s.c on X;

(iii) for each x∈X, f(x,·) is quasiconcave on X;

Then we have

infx∈Xsupy∈Xf(x, y)≤supx∈Xg(x, x).

3. MULTIOBJECTIVE GAMES

Now, we consider the multicriteria game (or multiobjective game) in its strategic form. Let I be a finite set of players and for each i ∈ I, let Xi be the set of strategies such that X =Q

i∈IXi and (Xi, Dii for eachi∈I) is an abstract convex space with Di ⊂ Xi. Let Ti : X → 2Rki, where ki ∈ N, which is called the payoff function (or called multicriteria). From Lemma 1, we also have that (X, D,Γ) is an abstract convex space, where X =Q

i∈IXi, D=Q

i∈IDi and Γ(A) =Q

i∈IΓii(A)) for eachA∈ F(D).

Definition 12. The family G= ((Xi, Dii), Ti)i∈I is called multicriteria game.

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If an action x := (x1, x2, ..., xn) is played, each player i is trying to find his/her payoff functionTi(x) := (T1i(x), ..., Tki

i(x)),which consists of non- commensurable outcomes. We assume that each player is trying to minimize his/her own payoff according with his/her preferences.

In order to introduce the equilibrium concepts of a multicriteria game, we need several necessary notations.

Notation. We shall denote by

Rm+ :={u= (u1, u2, ...um)∈Rm:uj ≥0 ∀j= 1,2, ..., m}and

intRm+ := {u = (u1, u2, ...um) ∈ Rm : uj > 0 ∀j = 1,2, ..., m} the non- negative orthant of Rm and respectively, the non-empty interior of Rm+ with the topology induced in terms of convergence of vector with respect to the Euclidian metric.

Notation. For eachi∈I,denotesX−i:=Q

j∈I\{i}Xj.Ifx= (x1, x2, ..., xn)

∈ X, we denote x−i = (x1, ..., xi−1, xi+1, ..., xn) ∈ X−i. If xi ∈ Xi and x−i ∈ X−i, we shall use the notation (x−i, xi) = (x1, ..., xi−1, xi, xi+1, ..., xn) =x∈X.

Notation. For each u, v∈Rm,u·v denote the standard Euclidian inner product.

Let bx= (xb1,xb2, ...,bxn)∈X. Now, we have the following definitions.

Definition 13.A strategyxbi∈Xiof playeriis said to be aPareto efficient strategy (resp., aweak Pareto efficient strategy) with respect to xb∈X of the multiobjective game G = ((Xi, Dii), Ti)i∈I if there is no strategy xi ∈ Xi

such that

Ti(bx)−Ti(bx−i, xi)∈Rk+i\{0} (resp.,Ti(bx)−Ti(bx−i, xi)∈intRk+i\{0}).

Remark 1. Each Pareto equilibrium is a weak Pareto equilibrium, but the converse is not always true.

Definition 14.A strategyxb∈X is said to be aPareto equilibrium (resp., aweak Pareto equilibrium) of the multiobjective gameG= ((Xi, Dii), Ti)i∈I

if for each player i ∈ I, bxi ∈ Xi is a Pareto efficient strategy (resp., a weak Pareto efficient strategy) with respect tox.b

Definition 15. A strategyxb∈X is said to be aweighted Nash equilibrium with respect to the weighted vectorW = (Wi)i∈IwithWi = (Wi,1, Wi,2, ..., Wi,ki)∈ Rk+iof the multiobjective gameG= ((Xi, Dii), Ti)i∈I if for each playeri∈I, we have

(i) Wi∈Rk+i\{0};

(ii) Wi ·Ti(x)b ≤ Wi ·Ti(xb−i, xi), ∀xi ∈ Xi,where · denotes the inner product in Rki.

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Remark 2. In particular, ifWi ∈Rk+i withPki

j=1Wi,j = 1 for eachi∈I, then the strategyxb∈X is said to be a normalized weighted Nash equilibrium with respect toW.

4. EXISTENCE OF WEIGHTED NASH EQUILIBRIUM AND PARETO NASH EQUILIBRIUM

Now, as an application of Theorem 1, we have the following existence theorem of weighted Nash equilibria for multiobjective games.

Theorem2. LetI be a finite set of indices, let (Xi, Di =Xii)i∈Ibe any finite family of abstract convex spaces such that the product space (X,Γ) satis- fies the partial KKM principle. If there is a weighted vectorW= (W1, W2, ..., Wn) with Wi ∈Rk+i\{0} such that the followings are satisfied.

(i)for each y∈X, F(y) ={x∈X:Pn

i=1Wi·(Ti(x−i, xi)−Ti(x−i, yi))≤ 0} is intersectionally closed (resp., transfer closed);

(ii) there exists g :X×X → R extended real-valued function such that for each x ∈ X, g(x, x) ≤ 0 and for each x ∈ X, coΓ{y ∈ X : Pn

i=1Wi · (Ti(x−i, xi)−Ti(x−i, yi))>0} ⊂ {y∈X:g(x, y)>0};

(iii) the correspondence F :X→2X satisfies the following condition:

There exists a nonempty compact subset K of X such that either (a) K ⊃ ∩{F(y) :y∈M} for some M ∈ F(X); or

(b)for each N ∈ F(X),there exists a compact Γ-convex subset LN of X relative to some X0 ⊂X such that N ⊂X0 and K ⊃LN ∩ ∩y∈x0F(y)6=φ;

Then there exists xb∈K such that xbis a weighted Nash equilibria of the game G= ((Xii), Ti)i∈I with respect to W.

Proof. Define the function f : X ×X → R by f(x, y) = Pn i=1Wi · (Ti(x−i, xi) −Ti(x−i, yi)), (x, y) ∈ X ×X. By Theorem 1, we have that infx∈Xsupy∈Xf(x, y) ≤ supx∈Xg(x, x) = 0. It follows that there exists an xb ∈ K such that f(x, y)b ≤ 0 for any y ∈ X, that is Pn

i=1Wi·(Ti(bx−i,xbi)− Ti(xb−i, yi) ≤0 for any y∈ X. For any given i∈I and any givenyi ∈Xi,let y= (xb−i, yi).Then we have

Wi·(Ti(xb−i,xbi)−Ti(xb−i, yi)) =

=Pn

j=1Wj·(Tj(xb−i,bxi)−Ti(bx−i, yi))−P

j6=iWj·(Tj(xb−i,bxi)−Ti(bx−i, yi))

=Pn

j=1Wj·(Tj(xb−i,xbi)−Ti(xb−i, yi))≤0.

Therefore, we have Wi·(Ti(bx−i,xbi)−Ti(bx−i, yi))≤0 for eachi∈I and yi ∈ Xi, that is bx ∈ K is a weighted Nash equilibrium of the game G with respect toW.

We obtain the following corollaries for the compact games when X=D.

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Corollary 3. Let I be a finite set of indices, let (Xii)i∈I be any finite family of abstract convex spaces such that the product space (X,Γ) satisfies the partial KKM principle. If there is a weighted vector W = (W1, W2, ..., Wn) with Wi ∈Rk+i\{0} such that the followings are satisfied.

(i) there exists g : X×X → R such that for each x, y ∈ X, Pn

i=1Wi · (Ti(x−i, xi)−Ti(x−i, yi)) ≤ g(x, y) and g(x, x) ≤ 0; (ii) for each y ∈ X, {x∈X:Pn

i=1Wi·(Ti(x−i, xi)−Ti(x−i, yi))>0} is unionly open in X;

(iii) for each x∈X, {y∈X :g(x, y)>0} is Γ-convex on X;

Then there exists xb∈X such that xbis a weighted Nash equilibria of the game G= ((Xii), Ti)i∈I with respect to W.

Corollary 4. Let I be a finite set of indices, let (Xii)i∈I be any finite family of abstract convex spaces such that the product space (X,Γ) satisfies the partial KKM principle. If there is a weighted vector W = (W1, W2, ..., Wn) with Wi ∈Rk+i\{0} such that the followings are satisfied.

(i) there exists g : X×X → R such that for each x, y ∈ X, Pn i=1Wi · (Ti(x−i, xi)−Ti(x−i, yi))≤g(x, y);

(ii) for each fixed y ∈ X, the function x → Pn

i=1Wi ·(Ti(x−i, xi)− Ti(x−i, yi)) is g.l.s.c on X;

(iii) for each fixed x ∈ X, the function y → Pn

i=1Wi ·(Ti(x−i, xi)− Ti(x−i, yi)) is quasiconcave on X;

Then there exists xb∈X such that xbis a weighted Nash equilibria of the game G= ((Xii), Ti)i∈I with respect to W.

In order to prove an existence theorem of Pareto equilibria for multiob- jective games, we need the following lemma.

Lemma 2 ([15]). Each normalized weighted Nash equilibrium bx∈X with a weight W = (W1, W2, ..., Wn) with Wi ∈ Rk+i\{0} (resp., Wi ∈intRk+i\{0}) andPki

j=1Wi,j = 1for eachi∈I,for a multiobjective game G= (Xi, Ti)i∈I is a weak Pareto equilibrium (resp., a Pareto equilibrium) of the game G.

Remark 3. The conclusion of Lemma 2 still holds ifbx∈X is a weighted Nash equilibrium with a weight W = (W1, W2, ..., Wn), Wi ∈ Rk+i\{0} for i∈I(resp.,Wi∈intRk+i\{0} fori∈I) of the game G.

Remark 4.A Pareto equilibrium of Gis not necessarily a weighted Nash equilibrium of the game G.

Theorem3. LetI be a finite set of indices, let (Xi, Di =Xii)i∈Ibe any finite family of abstract convex spaces such that the product space (X,Γ) satis- fies the partial KKM principle. If there is a weighted vectorW= (W1, W2, ..., Wn) with Wi ∈Rk+i\{0} such that the followings are satisfied.

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(i)for each y∈X, F(y) ={x∈X:Pn

i=1Wi·(Ti(x−i, xi)−Ti(x−i, yi))≤ 0} is intersectionally closed (resp., transfer closed);

(ii) there exists g :X×X → R extended real-valued function such that for each x ∈ X, g(x, x) ≤ 0 and for each x ∈ X, coΓ{y ∈ X : Pn

i=1Wi · (Ti(x−i, xi)−Ti(x−i, yi))>0} ⊂ {y∈X:g(x, y)>0};

(iii) the correspondence F :X→2X satisfies the following condition:

There exists a nonempty compact subset K of X such that either (a) K ⊃ ∩{F(y) :y∈M} for some M ∈ F(X); or

(b)for each N ∈ F(X),there exists a compact Γ-convex subset LN of X relative to some X0 ⊂X such that N ⊂X0 and K ⊃LN ∩ ∩y∈x0F(y)6=φ.

Then there exists xb∈K such that bx is a weak Pareto equilibrium of the game G = ((Xi, Di = Xii), Ti)i∈I. In addition, if W = (W1, W2, ..., Wn) with Wi ∈intRk+i\{0} for i∈I, then G has at least a Pareto equilibrium point xb∈X.

Proof. By Theorem 2, G has at least weighted Nash equilibrium point xb∈K with respect to the weighted vector W.Lemma 2 and Remark 3 show that bxis also a weak Pareto equilibrium point of G, and a Pareto equilibrium point of GifW = (W1, W2, ..., Wn) withWi∈intRk+i\{0} for each i∈I.

Acknowledgments.This work was supported by the strategic grant POSDRU/89/1.5/

S/58852, ProjectPostdoctoral programme for training scientific researcherscofinanced by the European Social Found within the Sectorial Operational Program Human Re- sources Development 2007-2013.

REFERENCES

[1] P. Borm, F. Megen and S. Tijs,A perfectness concept for multicriteria games. Math.

Methods Oper. Res. 49(1999), 401–412.

[2] S. Chebbi, Existence of Pareto equilibria for non-compact constrained multi-criteria games. J. Appl. Anal. 14(2008),2, 219–226.

[3] K. Fan, A generalization of Tyhonoff ’s fixed point theorem. Math. Ann. 142(1961), 305–310.

[4] K. Fan,A minimax inequality and applications. In: O. Shisha (Ed.),Inequalities III, pp. 103–113, Academic Press, New York, 1972.

[5] W.K. Kim,Weight Nash equilibria for generalized multiobjective games. J. Chungcheong Math. Soc. 13(2000),1,13–20.

[6] W.K. Kim and X.P. Ding,On generalized weight Nash equilibria for generalized multi- objective games. J. Korean Math. Soc. 40(2003),5, 883–899.

[7] D.T. Luc, E. Sarabi and A. Soubeyran, Existence of solutions in variational relation problems without convexity. J. Math. Anal. Appl. 364(2010), 544–555.

[8] S. Park,On generalizations of the KKM principle on abstract convex spaces. Nonlinear Anal. Forum11(2006),1,67–77.

[9] S. Park,Elements of the KKM theory on abstract convex spaces. J. Korean Math. Soc.

45(2008),1,1–27.

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[10] S. Park, Generalizations of the Nash EquilibriumTheorem in the KKM Theory. Fixed Point Theory Appl. doi:10.1155/2010/234706.

[11] S. Park, The KKM principle in abstract convex spaces: equivalent formulations and applications. Nonlinear Anal. 73(2010), 1028–1042.

[12] S. Park,Generalizations of the Nash Equilibrium Theorem in the KKM Theory. Fixed Point Theory Appl., doi:10.1155/2010/234706.

[13] S. Park,New generalizations of basic theorems in the KKM theory. Nonlinear Anal. 74 (2011), 3000-3010.

[14] M. Voorneveld, S. Grahn and M. Dufwenberg,Ideal equilibria in noncooperative multi- criteria games. Math. Methods Oper. Res. 52(2000), 65–77.

[15] S.Y. Wang, Existence of a Pareto equilibrium, J. Optim. Theory Appl. 95 (1997), 373–384.

[16] H. Yu,Weak Pareto Equilibria for Multiobjective Constrained games. Appl. Math. Lett.

16(2003), 773-776.

[17] J. Yu and G.X.-Z Yuan,The study of Pareto Equilibria for Multiobjective games by fixed point and Ky Fan Minimax Inequality methods. Comput. Math. Appl. 35(1998), 9, 17–24.

[18] X.Z. Yuan and E. Tarafdar, Non-compact Pareto equilibria for multiobjective games.

J. Math. Anal. Appl. 204(1996),156–163.

[19] M. Zeleny,Game with multiple payoffs. Internat. J. Game Theory4(1976), 179–191.

Received 1 February 2012 University of Bucharest,

Faculty of Mathematics and Computer Science, 14 Academiei Street

monica.patriche@yahoo.com

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