Proceedings of the 2017 International Conference on Applied Mathematics, Modelling and Statistics Application (AMMSA 2017)

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Parameterized Principal - Agent Game of Third Party Logistics and Randomization of Its Mixed Nash Equilibrium Strategies

Authors
Yicheng Gong, Yanna Zhang, Li Yu, Juan Zhao, Qingqing Li, Jieyi Chen
Corresponding Author
Yicheng Gong
Available Online May 2017.
DOI
10.2991/ammsa-17.2017.73How to use a DOI?
Keywords
the third party logistics; principal-agent game; mixed Nash equilibrium; Monte Carlo simulation
Abstract

This article aims to improve the practice feasibility of game theory for logistics demand enterprises and the third party logistics enterprises in a principal-agent game. Firstly, some parameters are introduced to the game. Especially the complaint rate is used to depict the degree of positive work or negative work. Secondly, strategies are digitalized. Lastly, Monte Carlo (MC) simulation is adopted to randomize the players' strategies according to the probability distribution of a mixed Nash equilibrium. The mixed equilibrium distribution of the logistics game is ((0.3333, 0.6667), (0.4097, 0.5903)). Theoretically, the logistics demand enterprises (D) expect to select supervision and indulgence as the probability 0.3333 and 0.6667 respectively. And the third party logistics enterprises (S) expect to select positive effort and negative effort as the probability 0.4097 and 0.5903 respectively. The simulation results show that the randomizing coincides with the probability distribution of the Nash equilibrium above 97.18%.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2017 International Conference on Applied Mathematics, Modelling and Statistics Application (AMMSA 2017)
Series
Advances in Intelligent Systems Research
Publication Date
May 2017
ISBN
978-94-6252-355-5
ISSN
1951-6851
DOI
10.2991/ammsa-17.2017.73How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Yicheng Gong
AU  - Yanna Zhang
AU  - Li Yu
AU  - Juan Zhao
AU  - Qingqing Li
AU  - Jieyi Chen
PY  - 2017/05
DA  - 2017/05
TI  - Parameterized Principal - Agent Game of Third Party Logistics and Randomization of Its Mixed Nash Equilibrium Strategies
BT  - Proceedings of the 2017 International Conference on Applied Mathematics, Modelling and Statistics Application (AMMSA 2017)
PB  - Atlantis Press
SP  - 327
EP  - 330
SN  - 1951-6851
UR  - https://doi.org/10.2991/ammsa-17.2017.73
DO  - 10.2991/ammsa-17.2017.73
ID  - Gong2017/05
ER  -