A game theoretic approach to a two firm bidding problem

摘要: In this paper a model is developed for determining optimal strategies two competing firms which are about to submit sealed tender bids on K contracts. A contract calls the winning firm supply specific amount of commodity at bid price. By same token, production that involves various amounts N different resources each possesses in limited quantities. It assumed and wants determine bidding strategy will maximize its profits subject constraint must be able produce products required meet contracts it wins. This formulated as sequence bimatrix games coupled together by resource constraints. Since firms' spaces intertwined, usual quadratic programming methods cannot used equilibrium strategies. lieu number theorems given partially characterize such For single problem techniques multiple similar yield subequilibrium or from least one firm's point view.