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Optimal Semi-Competitive Intermediation Networks Cover

Abstract

In this work we address the problem of optimizing collective profitability in semi-competitive intermediation networks defined as augmented directed acyclic graphs. Network participants are modeled as autonomous agents endowed with private utility functions. We introduce a mathematical optimization model for defining pricing strategies of network participants. We employ welfare economics aiming to maximize the Nash social welfare of the intermediation network. The paper contains mathematical results that theoretically prove the existence of such optimal strategies. We also discuss computational results that we obtained using a nonlinear convex numerical optimization package.

DOI: https://doi.org/10.2478/cait-2020-0042 | Journal eISSN: 1314-4081 | Journal ISSN: 1311-9702
Language: English
Page range: 81 - 94
Submitted on: Nov 6, 2019
Accepted on: Apr 22, 2020
Published on: Sep 13, 2020
Published by: Bulgarian Academy of Sciences, Institute of Information and Communication Technologies
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2020 Amelia Bădică, Costin Bădică, Maria Ganzha, Mirjana Ivanović, Marcin Paprzycki, published by Bulgarian Academy of Sciences, Institute of Information and Communication Technologies
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.