VECTOR EXTREMAL SYSTEMS IN CROSS-CONSTRAINED GAMES OF REGULATORY POLICY ANALYSIS AND SYNTHESIS

Vector extremal solutions for games with cross-constrained strategy se ts are applied to new games for analysis and synthesis of regulatory p olicy developed herein. They provide constructively, without recourse to point-to-set maps or quasi-variational inequalities, a set of solut ions (not just one Nash equilibrium generalization) forecasting normat ively players' behavior. A new method of vectorization of player's obj ectives provides dual problem relations at optimality which for a larg e class reduces the solution mathematics to ordinary convex programmin g, This method is developed in the context of a hypothetical example d rawn from the privatization of British Telecom.