This book constitutes the refereed proceedings of the 11th International Symposium on Algorithmic Game Theory, SAGT 2018, held in Beijing, China, in September 2018. The 19 full papers presented together with 6 short papers and 5 plenary talks were carefully reviewed and selected from 54 submissions. The papers cover various important aspects of algorithmic game theory including market equilibrium, auctions and applications, two sided markets, cake-cutting, cooperative games, voting games, multi-agent scheduling, price of stability, various mechanism design problems: online-dynamics and multi-stages as well as revenue maximization and resource allocation and applications.

This book provides a concise introduction to convex duality in financial mathematics. Convex duality plays an essential role in dealing with financial problems and involves maximizing concave utility functions and minimizing convex risk measures. Recently, convex and generalized convex dualities have shown to be crucial in the process of the dynamic hedging of contingent claims. Common underlying principles and connections between different perspectives are developed; results are illustrated through graphs and explained heuristically. This book can be used as a reference and is aimed toward graduate students, researchers and practitioners in mathematics, finance, economics, and optimization. Topics include: Markowitz portfolio theory, growth portfolio theory, fundamental theorem of asset pricing emphasizing the duality between utility optimization and pricing by martingale measures, risk measures and its dual representation, hedging and super-hedging and its relationship with linear programming duality and the duality relationship in dynamic hedging of contingent claims

This is the first book combining research on the Global Environment, Catastrophic Risks and Economic Theory and Policy. Modern economic theory originated in the middle of the twentieth century when industrial expansion coupled with population growth led to a voracious use of natural resources and global environmental concerns. It is uncontested that, for the first time in recorded history, humans dominate the planet, changing the planet's atmosphere, its bodies of water, and the complex web of species that makes life on earth. This radical change in circumstances led to rethinking of the foundations of human organization and, in particular, the industrial economy and the economic theory behind it. This book brings together new approaches on multiple levels: environmental sustainability requires rethinking in terms of economic theory and policy as well as the considerations of catastrophic risk and extremal events. Leading experts address questions of economic governance, risk management, policy decision making and distribution across time and space.

This book employs game theory to warfare and in particular to military operations. It aims at scrutinizing the validity of the two ideas that have governed the literature on war and warfighting: One is the Clausewitzian Fog of War, which suggests that he who is able to "see" through the gunsmoke and observe his opponent's moves before he has to commit to some strategy himself, should be able to gain an advantage over that enemy; the other is the tradition of understanding military conflict as a zero-sum game. Combined, these ideas seem to imply that war always gives rise to a second-mover advantage. This book questions the validity of this presumption at the operational level of military planning. It provides a simple but rigorous game-theoretic framework in order to analyse operational alternatives for a whole range of typical conflicts Western military forces are facing, including the most recent ones such as Anti-Access/Area-Denial and supporting host nations' counterinsurgency campaigns.

This book offers a comprehensive introduction to cooperative game theory and a practice-oriented reference guide to new models and tools for studying bilateral fuzzy relations among several agents or players. It introduces the reader to several fuzzy models, each of which is first analyzed in the context of classical games (crisp games) and subsequently in the context of fuzzy games. Special emphasis is given to the value of Shapley, which is presented for the first time in the context of fuzzy games. Students and researchers will find here a self-contained reference guide to cooperative fuzzy games, characterized by a wealth of examples, descriptions of a wide range of possible situations, step-by-step explanations of the basic mathematical concepts involved, and easy-to-follow information on axioms and properties.

This book takes the reader on a journey, navigating the enigmatic aspects of cooperation; a journey that starts inside the body and continues via our thoughts to the human super-organism. Cooperation is one of life's fundamental principles. We are all made of parts - genes, cells, organs, neurons, but also of ideas, or 'memes'. Our societies too are made of parts - us humans. Is all this cooperation fundamentally the same process? From the smallest component parts of our bodies and minds to our complicated societies, everywhere cooperation is the organizing principle. Often this cooperation has emerged because the constituting parts have benefited from the interactions, but not seldom the cooperating units appear to lose on the interaction. How then to explain cooperation? How can we understand our intricate societies where we regularly provide small and large favors for people we are unrelated to, know, or even never expect to meet again? Where does the idea come from that it is right to risk one's life for country, religion or freedom? The answers seem to reside in the two processes that have shaped humanity: biological and cultural evolution.

This state-of-the art collection of papers analyses various aspects of the theory of externalities and public goods. The contributions employ new analytical techniques like the aggregative game approach, and discuss the philosophical underpinnings of the theory. Furthermore, they highlight a range of topical empirical applications including climate policy and counterterrorism. This contributed volume was written in memory of Richard C. Cornes, a pioneer in the theory of externalities and public goods.

Level design connects the player to the game through challenges, experiences, and emotions. This book is an invaluable introduction to the evolving practices of Level Designers across the games industry. The increasingly complex role of the Level Designer requires technical and creative skill as it brings together architecture, art, player psychology, interaction design, usability, and experience design. This book explores in detail the principles designers employ when planning levels and building engaging spaces for the player. As well as practical approaches to level design, the book delves into the theoretical underpinnings of the processes and charts a path towards thinking like a Level Designer. Throughout the book you will be guided through the fundamentals of level design: each chapter builds on the types of research, ideation, best practices, and methodologies Level Designers employ when creating prototypes and shipped games. A series of interviews with designers and case studies from game studios examine the application of industry-wide expertise used to create triple-A and indie game titles. By the end of this book you will have gained valuable insight into the role of a Level Designer and be able to devise, plan, and build your own engaging and entertaining game levels.

This contributed volume offers a collection of papers presented at the 2016 Network Games, Control, and Optimization conference (NETGCOOP), held at the University of Avignon in France, November 23-25, 2016. These papers highlight the increasing importance of network control and optimization in many networking application domains, such as mobile and fixed access networks, computer networks, social networks, transportation networks, and, more recently, electricity grids and biological networks. Covering a wide variety of both theoretical and applied topics in the areas listed above, the authors explore several conceptual and algorithmic tools that are needed for efficient and robust control operation, performance optimization, and better understanding the relationships between entities that may be acting cooperatively or selfishly in uncertain and possibly adversarial environments. As such, this volume will be of interest to applied mathematicians, computer scientists, engineers, and researchers in other related fields.

Using the O.D.D. (Overview, Design concepts, Detail) protocol, this title explores the role of agent-based modeling in predicting the feasibility of various approaches to sustainability. The chapters incorporated in this volume consist of real case studies to illustrate the utility of agent-based modeling and complexity theory in discovering a path to more efficient and sustainable lifestyles. The topics covered within include: households' attitudes toward recycling, designing decision trees for representing sustainable behaviors, negotiation-based parking allocation, auction-based traffic signal control, and others. This selection of papers will be of interest to social scientists who wish to learn more about agent-based modeling as well as experts in the field of agent-based modeling.

This book presents different topics related to innovation, complexity, uncertainty, modeling and simulation, fuzzy logic, decision-making, aggregation operators, business and economic applications, among others. The chapters are the results of research presented at the International Workshop "Innovation, Complexity and Uncertainty in Economics and Business", held in Barcelona, in November 2019, by The Ibero-American Network for Competitiveness, Innovation and Development (REDCID in Spanish) and the Royal Academy of Economic and Financial Sciences (RACEF in Spanish). These papers are useful for junior and senior researchers in the area of economics and business.

This book provides practical solutions for addressing energy efficiency as a clause term within a charter party contract. For this, upon a reflection of the regulatory craft, it analyzes key concepts of case law, and discusses them together with commercial and economic principles. In this way, the book aims at offering a comprehensive, interdisciplinary view of the chartering process, together with a new approach for safeguarding energy efficiency investments. A special emphasis is given to the maritime industry. Here, the newly developed framework, based on game theory, has been successfully applied to demonstrate the importance of including a clause term in contract negotiation to achieve protection against both an uncertain market and an even more challenging shipping environment. The book not only fills a gap in the literature, covering a topic that has been largely neglected to date, yet it offers researchers and practitioners extensive information to change the chartering process radically.

This volume results from the "Second International Conference on Dynamics of Disasters" held in Kalamata, Greece, June 29-July 2, 2015. The conference covered particular topics involved in natural and man-made disasters such as war, chemical spills, and wildfires. Papers in this volume examine the finer points of disasters through: Critical infrastructure protection Resiliency Humanitarian logistic Relief supply chains Cooperative game theory Dynamical systems Decision making under risk and uncertainty Spread of diseases Contagion Funding for disaster relief Tools for emergency preparedness Response, and risk mitigation Multi-disciplinary theories, tools, techniques and methodologies are linked with disasters from mitigation and preparedness to response and recovery. The interdisciplinary approach to problems in economics, optimization, government, management, business, humanities, engineering, medicine, mathematics, computer science, behavioral studies, emergency services, and environmental studies will engage readers from a wide variety of fields and backgrounds.

This book explores the theoretical foundations of co-utility as well as its application to a number of areas, including distributed reputation management, anonymous keyword search, collaborative data anonymization, digital oblivion, peer-to-peer (P2P) content distribution, ridesharing for sustainable mobility, environmental economy, business model design and the collaborative economy. It evolved from presentations at the 1st Co-Utility Workshop, "held in Tarragona, Spain, on March 10-11, 2016." How can we guarantee that a global society without a common legal framework operates smoothly? If generosity, honesty and helpfulness do not arise spontaneously, one approach would be to design transactions so that helping others remains the best rational option. This is precisely the goal of co-utility, which can be defined in game-theoretic terms as any interaction between peers in which the best option for a player to maximize her or his utility is to make sure the other players also enjoy a fair share of utility (for example, functionality, security or privacy). Therefore, a protocol or mechanism designed using the co-utility principle ensures that helping others is the best rational option, even if players are selfish.

This contributed volume contains fourteen papers based on selected presentations from the European Conference on Game Theory SING11-GTM 2015, held at Saint Petersburg State University in July 2015, and the Networking Games and Management workshop, held at the Karelian Research Centre of the Russian Academy of Sciences in Petrozvavodsk, Russia, also in July 2015. These papers cover a wide range of topics in game theory, including recent advances in areas with high potential for future work, as well as new developments on classical results. Some of these include A new approach to journal ranking using methods from social choice theory; A differential game of a duopoly in which two firms are competing for market share in an industry with network externalities; The impact of information propagation in the model of tax audits; A voting model in which the results of previous votes can affect the process of coalition formation in a decision-making body; The Selten-Szidarovsky technique for the analysis of Nash equilibria of games with an aggregative structure; Generalized nucleoli and generalized bargaining sets for games with restricted cooperation; Bayesian networks and games of deterrence; and A new look at the study of solutions for games in partition function form. The maturity and vitality of modern-day game theory are reflected in the new ideas, novel applications, and contributions of young researchers represented in this collection. It will be of interest to anyone doing theoretical research in game theory or working on one its numerous applications.

This book presents state-of-the-art research in political economy dealing with the decision making process under different political institutions. It focuses on the role that states and governments have on political outcomes and on the well-being of individuals, taking into account the differences that arise across autocracies and democracies and within political regimes. The research in this book is embedded with the political economy and social choice traditions and uses the rigorous frameworks of economics, political science and social choice theory to show how institutional settings shape social choices of a group of individuals or a nation. The contributions in this volume use a variety of cutting-edge game theory and mathematical tools as well as data and simulations that coupled with statistical techniques help us gain greater insights into these issues.

This textbook presents worked-out exercises on game theory with detailed step-by-step explanations. While most textbooks on game theory focus on theoretical results, this book focuses on providing practical examples in which students can learn to systematically apply theoretical solution concepts to different fields of economics and business. The text initially presents games that are required in most courses at the undergraduate level and gradually advances to more challenging games appropriate for masters level courses. The first six chapters cover complete-information games, separately analyzing simultaneous-move and sequential-move games, with applications in industrial economics, law, and regulation. Subsequent chapters dedicate special attention to incomplete information games, such as signaling games, cheap talk games, and equilibrium refinements, emphasizing common steps and including graphical illustrations to focus students' attention on the most relevant payoff comparisons at each point of the analysis. In addition, exercises are ranked according to their difficulty, with a letter (A-C) next to the exercise number. This allows students to pace their studies and instructors to structure their classes accordingly. By providing detailed worked-out examples, this text gives students at various levels the tools they need to apply the tenets of game theory in many fields of business and economics. This text is appropriate for introductory-to-intermediate courses in game theory at the upper undergraduate and master's level.

This book provides the state of the art in the simulation and gaming study field by systematically collecting excellent papers presented at the 46th International Simulation and Gaming Association annual conference held in Kyoto 17-25 July 2015. Simulation and gaming has been used in a wide variety of areas ranging from early childhood education and school-age children, universities, and professional education, to policy exploration and social problem solving. Moreover, it now been drastically changing its features in the Internet Of Things (IOT) society while taking over a wide variety of aliases, such as serious games and gamification. Most of the papers on which this book's chapters are based were written by academic researchers, both up-and-coming and well known. In addition, simulation and gaming is a translational system science going from theory to clinical cross-disciplinary topics. With this book, therefore, graduate students and higher-level researchers, educators, and practitioners can become familiar with the state-of-the-art academic research on simulation and gaming in the network society of the twenty-first century.

This monograph provides a detailed analysis on fair queueing rules from a normative, a strategic, and a non-cooperative viewpoint. The queueing problem is concerned with the following situation: There is a group of agents who must be served in a facility. The facility can handle only one agent at a time and agents incur waiting costs. The problem is to find the order in which to serve agents and monetary transfers they should receive. The queueing problem has been studied extensively in the recent literature.

This book treats extensive form game theory in full generality. It provides a framework that does not rely on any finiteness assumptions at all, yet covers the finite case. The presentation starts by identifying the appropriate concept of a game tree. This concept represents a synthesis of earlier approaches, including the graph-theoretical and the decision-theoretical ones. It then provides a general model of sequential, interpersonal decision making, called extensive decision problems. Extensive forms are a special case thereof, which is such that all strategy profiles induce outcomes and do so uniquely. Requiring the existence of immediate predecessors yields discrete extensive forms, which are still general enough to cover almost all applications. The treatment culminates in a characterization of the topologies on the plays of the game tree that admit equilibrium analysis.

The book provides a thorough treatment of set functions, games and capacities as well as integrals with respect to capacities and games, in a mathematical rigorous presentation and in view of application to decision making. After a short chapter introducing some required basic knowledge (linear programming, polyhedra, ordered sets) and notation, the first part of the book consists of three long chapters developing the mathematical aspects. This part is not related to a particular application field and, by its neutral mathematical style, is useful to the widest audience. It gathers many results and notions which are scattered in the literature of various domains (game theory, decision, combinatorial optimization and operations research). The second part consists of three chapters, applying the previous notions in decision making and modelling: decision under uncertainty, decision with multiple criteria, possibility theory and Dempster-Shafer theory.

This volume presents 38 classic texts in formal epistemology, and strengthens the ties between research into this area of philosophy and its neighbouring intellectual disciplines. The editors provide introductions to five subsections: Bayesian Epistemology, Belief Change, Decision Theory, Interactive Epistemology and Epistemic Logic. 'Formal epistemology' is a term coined in the late 1990s for a new constellation of interests in philosophy, the origins of which are found in earlier works of epistemologists, philosophers of science and logicians. It addresses a growing agenda of problems concerning knowledge, belief, certainty, rationality, deliberation, decision, strategy, action and agent interaction - and it does so using methods from logic, probability, computability, decision and game theory. The volume also includes a thorough index and suggestions for further reading, and thus offers a complete teaching and research package for students as well as research scholars of formal epistemology, philosophy, logic, computer science, theoretical economics and cognitive psychology.

This book offers a thorough examination of potential game theory and its applications in radio resource management for wireless communications systems and networking. The book addresses two major research goals: how to identify a given game as a potential game, and how to design the utility functions and the potential functions with certain special properties in order to formulate a potential game. After proposing a unifying mathematical framework for the identification of potential games, the text surveys existing applications of this technique within wireless communications and networking problems found in OFDMA 3G/4G/WiFi networks, as well as next-generation systems such as cognitive radios and dynamic spectrum access networks. Professionals interested in understanding the theoretical aspect of this specialized field will find Potential Game Theory a valuable resource, as will advanced-level engineering students. It paves the way for extensive and rigorous research exploration on a topic whose capacity for practical applications is vast but not yet fully exploited.

This book studies storage policies in warehousing systems and maintenance-support strategies for critical operational systems in warehouses, which are the most important issues affecting operational efficiency of warehousing systems. It expands on the theory of class-based storage by considering a finite number of items in store, and also introduces the maintenance-support strategy founded on performance-based contract theory. It is a valuable resource for researchers, practitioners and engineers in the fields of industrial engineering, operations management, operations research and management science.

Sebastian Meiswinkel studies optimization problems that arise at container ports from a classic optimization as well as from a mechanism design point of view. The first part of this dissertation is focused on scheduling problems with selfish job owners that have private information about their characteristics. Afterwards the transportations of containers between the quay and a storage area is considered. Variants of this problem are analyzed for utilization of reach stackers and straddle carriers.