Three level hierarchical decision making model with GA

Abstract

Purpose

The purpose of this paper is to propose a numerical algorithm able to describe the Stackelberg strategy for a multi level hierarchical three-person game via genetic algorithm (GA) evolution process. There is only one player for each hierarchical level: there is an upper level leader (player L0), an intermediate level leader (player L1) who acts as a follower for L0 and as a leader for the lower level player (player F) that is the sole actual follower of this situation.

Design/methodology/approach

The paper presents a computational result via GA approach. The idea of the Stackelberg-GA is to bring together GAs and Stackelberg strategy in order to process a GA to build the Stackelberg strategy. Any player acting as a follower makes his decision at each step of the evolutionary process, playing a simple optimization problem whose solution is supposed to be unique.

Findings

A GA procedure to compute the Stackelberg equilibrium of the three-level hierarchical problem is given. An application to a Authority-Provider-User (APU) model in the context of wireless networks is discussed. The algorithm convergence is illustrated by means of some test cases.

Research limitations/implications

The solution to each level of hierarchy is supposed to be unique.

Originality/value

The paper demonstrates the possibility of using computational procedures based on GAs in hierarchical three level decision problems extending previous results obtained in the classical two level case.

Citation

D’Amato, E., Daniele, E., Mallozzi, L. and Petrone, G. (2014), "Three level hierarchical decision making model with GA", Engineering Computations, Vol. 31 No. 6, pp. 1116-1128. https://doi.org/10.1108/EC-03-2012-0075