Output details
15 - General Engineering
City University London
A Stochastic Multiple Leader Stackelberg Model: Analysis, Computation, and Application
Stackelberg leader follower game is one of the most popular mathematical models in economics for studying market competition. This paper proposes a new Stakelberg model with multiple leaders and followers which allows one to analyse a stochastic game where some players are strategic while the others are nonstrategic. The new theory and numerical methodology can be readily used to investigate the existence and uniqueness of equilibrium and obtain an equilibrium based on Monte Carlo sampling. The follow up research shows that the model has found various applications in energy markets, financial contracts and supply chain management.