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\begin{frame}{INCORPORATING COMPETITORS’ BEHAVIOR IN DEMAND BASED OPTIMIZATION MODELS}

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\item The starting point of this research project is the general framework developed in the SNF research project 200021_165636 entitled “Incorporating advanced behavioral models in mixed integer linear optimization”. The project aims at formulating explicitly the complex interaction between the supply and demand actors. We hypothesize that the decisions of supply actors (such as capacity, assortment, and price) are highly influenced by the decisions of other actors, through competition within the market. In this project, we will therefore explicitly consider multiple operators that compete for the same pool of customers. Each operator will take the supply-side decisions that optimize its performance function (e.g., maximization of revenue). Non-cooperative game theory is commonly used to model such oligopolistic competition. We plan to investigate how to integrate these games in the already developed framework. In this context, the objective will be to analyze the concept of equilibrium, that is, stationary states of the system where no actor has an incentive to change his/her decisions.

\item Sponsor: Swiss National Science Foundation

\item November 01, 2017-October 31, 2020

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