Negotiation and Equilibria in User Competition for Resources: A Dynamic Plot Approach

  • Authors:

  • Giampiero E. G. Beroggi;Pitu B. Mirchandani

  • Affiliations:

  • School of Technology, Policy, and Management, Delft University of Technology, P.O. Box 5015, 2600 GA Delft, The Netherlands. beroggi@sepa.tudelft.nl;Systems and Industrial Engineering Department, The University of Arizona, Tucson, Arizona 85721, USA. pitu@sie.arizona.edu

  • Venue:
  • Computational & Mathematical Organization Theory
  • Year:
  • 2000

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Abstract

We consider a scenario where two users arecompeting for substitutable facilities and where the costs to a userfor using a facility depend on its usage as well as the usage by theother user. This results in a nonlinear dynamic game the “solution”of which implies an allocation that satisfies both users. Games withfour different types of solution spaces are presented where theequilibria and the process to reach a negotiated compromise solutionhave different characterizations. Nash equilibria and nondominatedpoints are discussed in this context and an interactive graphicaldynamic plot approach is presented for obtaining negotiated solutionsin such nonlinear dynamic games.