Dynamic Game Theory and Management Strategy

Purpose Considering the resource constraint, this paper aims to study how to make value-added service (VAS) investment strategy considering the negative intra-group network externality on the seller side from the perspective of a two-sided platform. Design/methodology/approach The authors use the dynamic game theory, optimization, sensitive analysis and numerical study in this research. The authors model their research question from the perspective of the dynamic game theory, and through optimizing the platform’s profit function, the equilibrium results in terms of VAS investing and pricing strategies are derived. To explore the characteristics of the optimal strategies, sensitive analysis is used, and numerical studies are conducted to further illustrate the analytical results. Findings It is found that the intra-group network externality is not necessarily the determinant for VAS investment strategy, and its overall negative impact can be overtaken by the investment in certain conditions. The optimal VAS investment level decreases in the negative intra-group network externality. Though the VAS investment is on the seller side, it has either positive or negative impact on the pricing for buyers. Moreover, for a stronger intra-group network externality among sellers, the two-sided prices could either increase or decrease. Research limitations/implications The authors implicate how the intra-group network externality reduces the investment benefit and impacts the other side users. The limitation of considering the intra-group network externalities on only one side needs further extension. Practical implications The authors provide insights for platform operators in how to use recourse to improve users’ utility and how to price the two sides when competition exists on the seller side. Originality/value This study specifies the role of negative intra-group network externality in determining the investment and pricing strategy of a two-sided platform in addition to the positive inter-group network externality.

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High Performance Power Conditioning System Using Dynamic-Game-Theory-Based Variable Structure Controller

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.284-287.2367 ◽

2013 ◽

Vol 284-287 ◽

pp. 2367-2370

Author(s):

En Chih Chang ◽

Chun An Cheng ◽

Chien Hsuan Chang ◽

Hung Liang Cheng

Keyword(s):

Game Theory ◽

Tracking Control ◽

High Performance ◽

Dynamic Game ◽

Hamiltonian Function ◽

Variable Structure ◽

Power Conditioning ◽

External Disturbances ◽

Parameter Variations ◽

Dynamic Game Theory

In this paper, a variable structure controller based on dynamic game theory is proposed to reduce the effects of parameter variations, and external disturbances caused by uncertain systems. The variable structure controller (VSC) is a popular method for tracking control, since it can offer robustness to parameter variations, and external disturbances. However, the chattering problem occurs. The chattering may cause the degraded system performance and poor tracking control. Thus, the dynamic game theory is applied in VSC, to quickly, and precisely enforce the system states to the sliding surface, thus reducing the chattering. The stability and the convergence of the overall system are confirmed by the Hamiltonian function. The control algorithm has been realized for the actual power conditioning system (PCS) controlled by a TMS320F2812 DSP. With this proposed controller, an example that the controlled PCS under nonlinear loads yields the better robustness in performance. Experimental results validate the theoretical analysis.

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