HIERARCHICAL DIFFERENTIAL GAME BETWEEN MANUFACTURER, RETAILER, AND BANK

摘要

In this work, a microeconomic model describing interactions between a manufacturer, retailer, and bank is presented and studied. The manufacturer produces a single product, the retailer buys the goods in order to resell it to the third party for a profit, and the bank lends the money. For the first time, a noncooperative hierarchical-game approach will be applied to a three-dimensional model with five bounded controls. The best optimal strategy for each player will be found analytically with the use of the Pontryagin maximum principle. A simulation software package is developed to demonstrate the performance of our proposed optimal algorithms.