The application claims priority to Chinese patent application No. 2021107842176, filed on Jul. 12, 2021, the entire contents of which art incorporated herein by reference,
The present invention is related to the field of strategy adjustment, and in particular, to a fast and flexible holomorphic embedding method and apparatus for economic strategy adjustment.
In fields in which economic analysis is actively used nowadays, static and dynamic games are important instruments for analyzing strategic interactions between economic entities and have been used extensively in economics. In many economic models or even games, an equilibrium may be described as a solution of a polynomial system, so that all cases of equilibriums can be obtained through analysis for selecting a corresponding strategy. A conventional method for analyzing an equilibrium needs to consume a huge amount of computing resources, causing difficulties for enterprises in adjusting economic strategies in the right time and generating maximal profit.
To resolve the foregoing technical problem, the objective of the present invention is to provide a fast and flexible holomorphic embedding method and apparatus for economic strategy adjustment, to efficiently solve polynomial equations according to a fast and flexible holomorphic embedding method based on an are-length parametrization, so that strategy selection can be performed by assessing and analyzing all cases of equilibriums in equilibrium solutions.
A first technical solution used in the present invention is a fast and flexible holomorphic embedding method for economic strategy adjustment, including the following steps:
S1: obtaining product data and establishing equilibrium polynomial equations based on a Bertrand model;
S2; describing the equilibrium polynomial equations as a polynomial system and constructing a polynomial homotopy function;
S3: solving the equilibrium polynomial equations to obtain solutions of the equations; and
S4: analyzing equilibriums based on the solutions of the equations and performing economic strategy selection,
Further, an expression of the equilibrium polynomial equations: s as follows:
to in the expression, each of x and y represents a corresponding product, px represents a price of the product x, py represents a price of the product y, Z represents a new variable derived from px and py.
Further, x=(x1, x2, . . . , xn)T, f(x)=[f1(x), f2(x), . . . , fn(x)]τ, and an expression of the polynomial homotopy function is as follows:
H(x, t)=(2−t)g(x)+(t−1)f(x);
in the expression, f(x) represents a polynomial function on the left of the equilibrium polynomial equations, or another polynomial function to be solved, and g(x) is a polynomial function constructed according to a total-degree method or a simple function constructed by another manner.
Further, the step of solving the equilibrium polynomial equations to obtain solutions of the
equations specifically includes:
S24: substituting a value of rational function at s=s0 into the embedding system by using a method computing the value of rational function by a ratio of matrix determinants, to obtain a mismatch between values at left and right sides of the equation;
S25: reducing s0 and returning to step S24 when determining that the mismatch between the values at the left and right sides of the equation is not less than a preset threshold, and repeating the process until the mismatch between the values at the left and right sides of the equation is less than the preset threshold;
S26: recording
S27: determining that t≥2, solving s=when t(s)=2 and substituting s=
S28; determining a saddle-node bifurcation (SNB) point on a corresponding curve by calculating an extreme point of an approximation function of t(s).
Further, an expression of the embedding system is as follows:
in the expression, s is an arc length parameter, x=(x1, x2, . , , , xn)T is a variable to he solved, and t is a variable introduced to devise a homotopy function H.
Further, an expression of a power series expansion of xk is as follows:
xk(s)=Σ1≥0aqx
in the expression, s is the arc length parameter, and aqx
The method further includes:
The method further includes:
Further, the step of analyzing equilibriums based on the solutions of the equations and performing economic strategy selection specifically includes:
A second, technical solution used in the present invention is a fast and flexible holomorphic embedding apparatus for economic strategy adjustment, including:
The beneficial effect of the method and the apparatus in the present invention is that a corresponding economic model and polynomial equations can he constructed based on an actual case of an enterprise, the polynomial equations can he efficiently solved based on an arc-length parametrization and a curve tracing method using piecewise rational function approximation, and a corresponding economic strategy satisfying a restriction can be selected by ,assessing and analyzing all cases of equilibriums in equilibrium solutions, to boost the enterprise profit,
method for economic strategy adjustment according to a specific embodiment of the present invention;
The present invention is further described in detail below in conjunction with the accompanying drawings and specific embodiments. Serial numbers of steps in the following embodiments are merely for description and explanation, and do not constitute any limitation on a sequence of the steps, An execution sequence of each step in the embodiments may be adaptively adjusted based on understanding of a person skilled in the art.
As shown in
Specifically, the Bertrand model is used as an example to describe a process of constructing a polynomial system based on an economic; model. There are two types of products; x and y. enterprise x(y) produces the product x(Y), and there are three types of clients. px(py) is a price of the product x(y). Dxl(Dyl) is a quantity of the, product x(y) demanded by a type i client, and i=1,2,3, A type I client demands only the product x with a linear demand curve. Therefore:
Dx1=A−px, Dy1=0; and
Dx3=0, Dy4=A−py;
A is a constant, A type 2 client demands both the two types of products. A quantity of type 2 clients is n. Assume that the two types of products are not imperfect substitutes for the type 2 client, an elasticity of substitution between the two types of products .is constant, and an elasticity of demand of a composite commodity is constant. That is:
Dx2=npx−σ(px1−σ+py1−σ)(γ−σ)/(−1+σ),
Dy2=npy−σ(px1−σ+py1−σ)(γ−σ)/(−1+σ);
σ is the elasticity of substitution between x and y, and γ is the elasticity of demand of the composite commodity. Therefore, aggregate demand is as follows:
Dx=Dx1+Dx2+Dx3, and
Dy=Dy1+Dy2+Dy3;
a unit cost of production of each enterprise is in. A profit of the product x is Rx=(px−m)Dx, and MRx is a marginal profit of the product x. Ry, MRy are defined similarly Therefore, an equilibrium price satisfies a condition: MRx=MRy=0. Assume that corresponding parameters are σ=3, y=2, n=2700, m=1,A=50. Therefore, marginal profit functions are as follows:
as the above equations are not polynomial equations, the equations need to be converted into standard polynomial equations. Define.:
Z=(px−2+py−2)1/2
Therefore, the following polynomial equations are obtained:
The polynomial equations may be described as a polynomial system f(x)=0,x=(px, py, Z)T.
px(py) is a price of the product x(y) in equilibrium, so that the enterprise profits Rx, Ry are maximal profits. To be specific, when a second-order condition for profit is satisfied and a strategy made by another given participant is also satisfied, a maximal profit is generated in the set of candidate equilibriums.
S3; solving the equilibrium polynomial equations to obtain solutions of the equations;
S4: analyzing equilibriums based on the solutions of the equations and performing economic strategy selection.
Further, as an embodiment of the method, it is assumed that a polynomial system to he solved is f(x)=0, where x=(x1, x2, . . . ,xn)T, f(x)=[f1(x), f2(x), . . . fn(x)]T, and an expression of the polynomial homotopy function is as follows:
H(x, t)=(2−t)g(x)+(t−1)f(x); (1)
in the expression, g(x)=[g1(x), g2(x), . . . , gn(x)]T.
Further, as an embodiment of the method, the step of solving the equilibrium polynomial equations to obtain solutions of the equations specifically includes:
S21: initializing and setting an order qmax for a partial sum of a power series, a threshold ε of a mismatch tolerance for both sides of an equation, and an upper bound smax for an arc length of each extension, and at t=1, solving a real solution of H(x, t)=g(x) as a corresponding initial point X0=(x1(0), x2(0), . . . , xn(0), t(0));
S22: introducing a parameter s, and selecting a normalization equation for the arc-length
parametrization with the polynomial homotopy function, to construct an embedding system.
S23: providing a power series of xk(s), k=1,2, . . . n, t(s) using s as a parameter and substituting the power series into the embedding system, to obtain an equation in which coefficients of a power series expansion are used as unknown variables, solving the coefficients of the power series, by using a logarithmic (log) method, and performing searching-direction selection on a curve by a tangent matching principle.
Specifically, the power series using s as a parameter is xk(s)=Σq≥0aqx
in addition, according to the tangent matching principle, the searching-direction of the subsequent curve segment is selected based on the direction of a tangent line of a previous segment at a last point to ensure smoothness of the traced curve.
The equations in which the coefficients of the power series a used as the unknown variables are as follows:
in the expression, s is the arc length parameter, and aqx
First, coefficients rat a same power of s are compared, and for a0x
a0x
The equations H(x(s), t(s))=0 are reduced to the linear equations. Specific steps of the logarithmic (log) method are enlisted herein, as shown in
It is specified that t(s)=xn+1(s), and for each monomial f(s)=Πk(xk(s))α
To obtain (q+1)th power coefficients of the power series expansions, for each polynomial:
a monomial coefficient vector aq+1F satisfies:
β*aq+1F=0 (6)
β=(β1. . . , βm), aq+1F =(aq+1f
Linear equations are obtained combining (3), (4), (5), and (6):
AX=b; (7)
X=(aq+1x
For a1x
Herein, X =(a1x
(8) and (9) are reduced to a quadratic equation with one unknown variable a1x
c0(a1x
c0, c1, and c2 may be calculated based on A and b. To select one solution of a1x
for a first time of solving, aqx
As equations satisfied by aqx
S24: substituting a value of rational function at s=s0 into the embedding system by using a method computing the value of rational function by a ratio of matrix determinants, to obtain a mismatch between values at left and right sides of the equation.
in addition, the method may be replaced with a method in which coefficients of a rational approximation fraction are calculated based on the coefficients of the power series expansion,
S25: reducing s0 and returning to step S24 when determining that the mismatch between the values at the left and right sides of the equation is not less than a preset threshold, and repeating the process until the mismatch between the values at the left and right sides of the equation is less than the preset threshold.
Specifically, it is specified that s0=smax, based on power series information of xk(s)(k=1, . . . , n), t(s), two determinants for calculating a value of a rational approximation function at s=s0 are constructed as follows:
L+M=qmax, L, M≥0, and when j<0, ajx
In addition, a value of
at s=s0 may be calculated using the different method or another method, and may be denoted as dt0.
The value at s=s0 is substituted into the equation (2), and whether the mismatch between 10 values at the left and right sides of the equation is less than a preset allowable threshold ε is determined. if the mismatch is less than the threshold, it is recorded that {tilde over (s)}0=s0; otherwise, s0 reduced, until. the mismatch is less than the threshold, and {tilde over (s)}0 is finally recorded. To be specific, s0 is found as large as possible so that the maximal mismatch at it is less than the threshold ε,
S26: recording
S27: determining that t≥obtaining s=
into the latest power series expansion of xk, and obtaining a numerical value xk(
S28: as shown in
t(S)=Eq≥0aqx
or a rational approximation function of the power series, a corresponding SNB point determined.
Further, as an embodiment of the method, the step of analyzing equilibriums based on the solutions of the equations and performing economic strategy selection specifically includes:
Specifically, the second-order condition for the enterprise profit is checked. That is, the second-order derivative of the profit function is negative, and all candidate equilibriums, of enterprises, that do not satisfy the second-order condition are removed, In this example, the second- order derivative of Rx,Ry are both negative; and the global optimality , each remaining candidate equilibrium of each enterprise is checked. With the strategy made by the another given participant, and a global maximal value has to satisfy a first-order condition. Therefore, all solutions satisfying the first-order condition of the enterprise are found in the candidate equilibrium condition, and the solution generating the highest profit is finally selected. Only if the candidate equilibrium is the global maximal value, an equilibrium can be kept for selecting a corresponding solution.
Further, as an embodiment of the method, the method further includes:
Further, as an embodiment of the method, the method further includes;
Specifically, the separation method includes a variable separation method and a coefficient separation
For the complex solution, separation of the homotopy function H (x, t) in step S12 into real and imaginary parts is needed, and it is specified:
xk=vk+wk*1,k=1,2, . . . , n; (10)
vk, wk are both real variables, and k=1,2, . . . , n; l is the imaginary unit.
These are substituted into H(x, t) =0 again, and the following equations are obtained through separation into real and imaginary parts:
H1(v, w, t)=0, and
H2(v, w, t)=0;
v=(v1, v2, . . . , vn)T, w=(w1w2, . . . , wn)T. In this case, to solve the real solutions of the polynomial equations, a step in S3 is performed for solving, and the solution is substituted into (10) to obtain a solution of the original equations.
In addition, a specific embodiment of the present invention further includes a coefficient separation method for solving a complex solution of the polynomial equations based on FFHE,
For the complex solution, separation of A and X in the linear equations in step S2 into real and imaginary parts is needed, and it is specified:
aq+1x
A is separated into A=[A1, A2], where A1 is an n×n-order matrix, and A2 is an n-dimensional column vector; and it is specified that X1=(aq+1x
Ai,R, Ai,I respectively represent real and imaginary parts of Ai, and i=1,2; and bR, bl respectively represent real and imaginary parts of b.
Then, equations are generated with the arc-length parametrization equation:
The method in Which the coefficients of the same power of s are compared in a step in S2 may be used to obtain a real solution of X1,R, X1,l, X2. These are substituted into (11) to obtain a complex coefficient solution of X, Another step is similar to a step in S2,
A fast and flexible holomorphic embedding apparatus for economic strategy adjustment includes;
The content in the foregoing method embodiments is all applicable to this apparatus embodiment, Functions specifically implemented in the apparatus embodiment are the same as those in the method embodiments, with same beneficial effect achieved as beneficial effect achieved in the method embodiments,
The foregoing content is a specific description of embodiments of the present invention, but the present invention is not limited to the foregoing embodiments. A person skilled in the art may make various equivalent transformations or replacements, provided that the spirit of the present invention is not violated. These equivalent transformations or replacements shall all fall within the scope of the claims of this application.
Number | Date | Country | Kind |
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2021107842176 | Jul 2021 | CN | national |
Number | Date | Country | |
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Parent | PCT/CN2022/094900 | May 2022 | US |
Child | 18405880 | US |