Multi-firm Dynamic Production Game with Fuzzy Market Demand

This paper studies dynamical production game between two firms and generalizes the game among more than two firms. The market demand is characterized as a fuzzy variable in game model. The expected Nash equilibrium is defined and it is proved that the Nash equilibrium exists. The proposed game model has advantages over the existing ones in solving dynamical production game in a fuzzy environment. The result will contribute to the game theory and production management application. In the end, a numerical example is given to illustrate the rationality and practicality of the proposed game model.