Developments in differential game theory and numerical methods: economic and management applications

Jørgensen, Steffen; Zaccour, Georges

doi:10.1007/s10287-006-0032-x

Cited by 53 publications

(33 citation statements)

References 81 publications

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“…They are common in studying the optimality problem of interconnected companies in a dynamic and competitive environment as has been shown to be the case with advertisement and promotional strategies (Jørgensen & Zaccour, 2007;Karray & Martín-Herrán, 2009), brand competition (Jørgensen & Zaccour, 2007), and product advertising (Karray & Martín-Herrán, 2009). Therefore, a differential game model is a powerful tool to study the dynamic nature of the pricing strategy between coopetition partners.…”

Section: Solution In a Stackelberg Differential Gamementioning

confidence: 99%

Pricing management between partnering rivals: a coopetitive diffusion analysis

Chen

Shu

Strombeck

2014

International Journal of Systems Science: Operations & Logi

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This paper investigates a dynamic pricing strategy between competitive partners of national and private brands. To examine this pricing strategy, we model the behavioural interactions between the coopetitive parties through the S-shaped diffusion process using a Stackelberg differential game simulation. Our findings illustrate that even under conditions of demand mutualism, suppliers and retailers are financially better off when the price gap between their national and private brands is incrementally reduced throughout the product life cycle of these brands. Alternative strategies such as deterring rivals' entrance into a market through defensive pricing strategies thus appear suboptimal to our proposed gap reduction pricing strategy. All of this indicates that while a dominant coopetitive partner strives to retain its leading market position, it also has a vested interest in ensuring the survival of its cooperative partner.

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Section: Solution In a Stackelberg Differential Gamementioning

confidence: 99%

Pricing management between partnering rivals: a coopetitive diffusion analysis

Chen

Shu

Strombeck

2014

International Journal of Systems Science: Operations & Logi

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“…Furthermore, because discrete time formulations of the problem cannot yield solutions in the form of fundamental functions, they have typically been avoided in the literature. A survey by Jorgensen and Zaccour [9] provides an excellent overview of the historical trends in the analysis approaches to optimal resource stockpile problems.…”

Section: A the Optimal Strategic Reserve Problemmentioning

confidence: 99%

Optimal Stockpile Problems with Stochastic Consumption Saturation and Solution Interval

Lloyd

Meyer

2014

2014 American Control Conference

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Economic problems in the optimal management of strategic resource stockpiles can be rigorously studied and solved by formulating them as optimal control problems in continuous time. Often, the real economic systems and stockpiling scenarios of interest exhibit both stochastic features and input saturation effects. Building on work to account for saturation effects into basic optimal stockpile problems, the following paper solves a basic optimal stockpile model with a stochastic saturation limit as well as a stochastic solution interval.

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“…The first player controls a system consisting of an ordinary differential equation for a state variable x(t) to describe the continuous motion and a discrete equation describing jumps in the state. The first player chooses 19 Our exposition is based on [113]. a continuous control u(t) to influence the evolution of x(t) and discontinuous control μ to produce a jump in the state.…”

Section: Larger Variety Of Toolsmentioning

confidence: 99%