A game theoretical analysis of the quantity discount problem with perfect and incomplete information about the buyer's cost structure
The algebraic counterpart of the Wagner hierarchy consists of a well-founded and decidable classification of finite pointed ω-semigroups of width 2 and height ωω. This paper completes the description of this algebraic hierarchy. We first give a purely algebraic decidability procedure of this partial ordering by introducing a graph representation of finite pointed ω-semigroups allowing to compute their precise Wagner degrees. The Wagner degree of any ω-rational language can therefore be computed...
The algebraic study of formal languages shows that ω-rational sets correspond precisely to the ω-languages recognizable by finite ω-semigroups. Within this framework, we provide a construction of the algebraic counterpart of the Wagner hierarchy. We adopt a hierarchical game approach, by translating the Wadge theory from the ω-rational language to the ω-semigroup context. More precisely, we first show that the Wagner degree is indeed a syntactic invariant. We then define a reduction relation on...
The paper concerns a two-level hierarchical game, where the players on each level behave noncooperatively. In this way one can model eg an oligopolistic market with several large and several small firms. We derive two types of necessary conditions for a solution of this game and discuss briefly the possibilities of its computation.