Game theoretic models in engineering decision making

Abstract

Various types of game theory models for systematically studying conflict in engineering and other fields are reviewed, assessed, and illustrated. Representative literature regarding the development and application of game theory in engineering decision making is referenced and two applications are presented. Specifically, a game theory model in extensive form is employed to investigate the effectiveness of a commonly-practised system of environmental laws and regulations. In another application, the graph model for conflict resolution is used for modelling and analyzing a complex environmental dispute that took place in Canada. This conflict involves four main decision makers, each with its own objectives and priorities with respect to the controversy. To assist in formally analyzing the dispute and carrying out sensitivity analyses, a flexible decision support system is utilized.