A Subgame Perfect Approach to a Multi-Period Stackelberg Game with Dynamic, Price-Dependent, Distributional-Robust Demand

A Distributional Robust Analysis of Buyback and Cap-and-Trade Policies

“…The stochastic part of the demand ε k is normalized to have a mean and standard deviation of 0 and 1 and they are independent of each other (between periods). This problem can be solved when the distribution of demand is known (Fakhrabadi and Sandal, 2023b). This paper investigates situations with incomplete demand information because it is either impossible to obtain all the information or it is too costly.…”

“…This paper investigates situations with incomplete demand information because it is either impossible to obtain all the information or it is too costly. The distributional-robust (DR) approach for a multi-periodic price history-dependent problem is introduced in a seminal paper by Sandal, 2023 (Fakhrabadi andSandal, 2023b). We provide more information regarding DR approach formulation in section 2.…”

“…( 3) and ( 5), the value of E(D − q) + is required. Referring to the paper of Fakhrabadi and Sandal (Fakhrabadi and Sandal, 2023b),…”

Multi-Periodic Distributional-Robust Stackelberg Game with Price-History-Dependent Demand and Environmental Corrective Actions

“…The demand distribution, if known, provides a solution for the term 𝐸[𝐷 𝑘 − 𝑞 𝑘 ] + . However, Cauchy-Schwartz inequality (Fakhrabadi & Sandal, 2023) 4 assists with…”

“…is optimized in each period 𝑘, i.e., the players optimize their current situation in the game, ensuring a subgame-perfect solution by starting at the end (Fakhrabadi & Sandal, 2023;Gholami, Sandal, & Ubøe, 2021). In Eq.…”