<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this work we address the problem of optimizing collective profitability in semi-competitive intermediation networks defined as augmented directed acyclic graphs. Network participants are modeled as autonomous agents endowed with private utility functions. We introduce a mathematical optimization model for defining pricing strategies of network participants. We employ welfare economics aiming to maximize the Nash social welfare of the intermediation network. The paper contains mathematical results that theoretically prove the existence of such optimal strategies. We also discuss computational results that we obtained using a nonlinear convex numerical optimization package.</p>
</abstract>

In this work we address the problem of optimizing collective profitability in semi-competitive intermediation networks defined as augmented directed acyclic graphs. Network participants are modeled as autonomous agents endowed with private utility functions. We introduce a mathematical optimization model for defining pricing strategies of network participants. We employ welfare economics aiming to maximize the Nash social welfare of the intermediation network. The paper contains mathematical results that theoretically prove the existence of such optimal strategies. We also discuss computational results that we obtained using a nonlinear convex numerical optimization package.

Optimal Semi-Competitive Intermediation Networks

Cybernetics and Information Technologies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Optimal Semi-Competitive Intermediation Networks"}

In this work we address the problem of optimizing collective profitability in semi-competitive intermediation networks defined as augmented directed acyclic...

Optimal Semi-Competitive Intermediation Networks

Published Online: Sep 13, 2020

Page range: 81 - 94

Received: Nov 06, 2019

Accepted: Apr 22, 2020

DOI: https://doi.org/10.2478/cait-2020-0042

Keywords
Social welfare, Intermediation, Profitability, Nonlinear convex optimization, Directed acyclic graph

© 2020 Amelia Bădică et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Optimal Semi-Competitive Intermediation Networks

Published Online: Sep 13, 2020

Page range: 81 - 94

Received: Nov 06, 2019

Accepted: Apr 22, 2020

DOI: https://doi.org/10.2478/cait-2020-0042

KeywordsSocial welfare, Intermediation, Profitability, Nonlinear convex optimization, Directed acyclic graph

© 2020 Amelia Bădică et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Social welfare, Intermediation, Profitability, Nonlinear convex optimization, Directed acyclic graph