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Location Game and Applications in Transportation Networks

In: Computational Management Science

Author

Listed:
  • Vladimir Mazalov

    (Institute of Applied Mathematical Research)

  • Anna Shchiptsova

    (Institute of Applied Mathematical Research)

  • Yulia Tokareva

    (Transbaikal State University)

Abstract

We consider a market where the consumers are distributed in the vertexes of a transportation graph. The edges of the graph are the transportation links. The vertexes are the hubs. The consumers are the passengers who use this kind of transportation. The demand is determined by the flow of passengers. There are n companies (players) who make a service in this market. First, players form their transportation networks, and then they announce the prices for the service. The objective of a player is to maximize the payoff. We derive the equilibrium in this non-cooperative game. The results of numerical simulations are provided.

Suggested Citation

  • Vladimir Mazalov & Anna Shchiptsova & Yulia Tokareva, 2016. "Location Game and Applications in Transportation Networks," Lecture Notes in Economics and Mathematical Systems, in: Raquel J. Fonseca & Gerhard-Wilhelm Weber & João Telhada (ed.), Computational Management Science, edition 1, pages 55-61, Springer.
    • Handle: RePEc:spr:lnechp:978-3-319-20430-7_8
    DOI: 10.1007/978-3-319-20430-7_8
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