Existence and Optimality of Nash Equilibria in Inventory Games

Laura Giarre, Dario Bauso, Raffaele Pesenti

Research output: Contribution to conferenceOther


This paper studies the stability and optimality of a distributed consensus protocol for n-player repeated non cooperative games under incomplete information. At each stage, the players choose binary strategies and incur in a payo® monotonically decreasing with the number of active players. The game is specialized to an inventory application, where fixed costs are shared among all retailers, interested in whether reordering or not from a common warehouse. The authors focus on Pareto optimality as a measure of coordination of reordering strategies, proving that there exists a unique Pareto optimal Nash equilibrium that verifies certain stability conditions.
Original languageEnglish
Number of pages6
Publication statusPublished - 2005


All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering

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