Game Theory Paper

The games between the authority and drivers are usually Stackelberg games. Fisk (1984) modelled the interactions of drivers’ groups and the optimisation of signal control (authority). The authority makes a first move in this case, i.e. to minimise the network total travel time, and the followers (drivers) move sequentially by reducing their travel time. The authority can control the travel time for the whole network by responding advance in an optimal way to the drivers’ selfishness. In this study, the game theory concepts are incorporated into the system optimal (for authority) and user equilibrium (drivers). Bjørnskau and Elvik (1992) admits that game theory provide better insights than traditional choice theory, in their study of traffic law enforcement and driver behaviour. …show more content…
These three formulations; Cournot game , where drivers and the traffic control authority choose their strategies independently and at the same time; Stackelberg game, where the traffic authority first selects a strategy and then drivers; Monopoly game, where the authority has the full control to determine a strategy (system optimal). The results show that Stackelberg equilibrium solution is better than Cournot solution, and the Monopoly game could be used as a point of reference for Cournot or Stackelberg solutions. These studies on Stackelberg games show that the authority opt for system optimal equilibrium, whereas drivers prefer to have a user equilibrium. Compare to the games only between drivers, these game can provide insights for transport