A Stackelberg equilibrium for a missile procurement problem
This paper deals with a procurement problem of missiles involving the efficient assignment of the missiles to some targets. Within a fixed amount of budget, a leader purchases several types of missiles, by which he aims to damage as much value as possible a follower hides into some facilities later. The effectiveness of the missile depends on the type of missile and facility. A payoff of the game is the expected amount of destroyed value. The problem is generalized as a two-person zero-sum game of distributing discrete resources with a leader and a follower. Our problem is to derive a Stackelberg equilibrium for the game. This type of game has an abundance of applications. The problem is first formulated into an integer programming problem with a non-separable objective function of variables and it is further equivalently transformed into a maximin integer knapsack problem. We propose three exacts methods and an approximation method for an optimal solution.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:193:y:2009:i:1:p:238-249. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.