Collective Profitability and Welfare in Selling-Buying Intermediation Processes

Bădică, Amelia; Bǎdicǎ, Costin; Ivanović, Mirjana; Buligiu, Ionuţ

doi:10.1007/978-3-319-45246-3_2

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“…Let us now consider the following cycle of : (1, 3), (3, 6), (6,4), (4,1). Representing arcs by their indices and assigning one of signs + and − to each arc following its orientation relative to the cycle orientation, we get the cycle: 1, 5, −6, −2.…”

Section: Case Studymentioning

confidence: 99%

“…In our recent research work we are interested in the modelling and analysis of such complex business processes as semi-competitive intermediation networks. Our results on this subject are presented in papers [4,5] and synthesis paper [12] and refer to the following aspects of the problem: i) the introduction of a domain-independent process model, grounded on Directed Acyclic Graphs (DAG hereafter), and ii) the development of necessary and sufficient conditions that guarantee profitable pricing strategies of involved actors in the intermediation process.…”

Section: Introductionmentioning

confidence: 99%

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Optimal Semi-Competitive Intermediation Networks

BădicăAmelia

BădicăCostin

GanzhaMaria

et al. 2020

Cybernetics and Information Technologies

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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.

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Section: Case Studymentioning

confidence: 99%