July 21, 2022
by
- Hoang Bao Vy – 1901040248
- Luu Thi Thu Huyen – 1901040098
- Tong Thi Tram – 1901040228
- Tran Hoang Lan – 1901040120
- Pham Thi Mai Anh – 1901040021
Supervised by: Dr. Trinh Bao Ngoc
Abstract
The oil is a critical and essential product of the global system that directly affects global activities. However, the erratic change in oil price has become an extremely noticeable concern that needs to be solved to limit the impact on the costs of other industries as well as people’s lives in society. To make an attempt in solving this problem, we are trying to apply a negotiation model in which each oil firm does its best to achieve the broadest possible share so that game theory and Nash equilibrium can easily shed light on this problem (Bratvold & Koch, 2011). In this paper, we will examine the oil price problem by using game theory and applying the NSGA-II model to tackle the problem. The NSGA-II model enables us to solve conflicts between multiple objectives and also analyze price changes, and in this particular case, NSGA-II will be used to deal with all the non-linearities while considering real-world circumstances. The experiment that we demonstrated will show how effective it is to apply this model to deal with the price conflict in the oil industry, thereby yielding the most optimal balance between the stakeholders, which could be a promising solution.