Equilibrium Cycle - A Dynamic Equilibrium and Its Application in Ride Hailing

Attend this academic lecture exploring a novel equilibrium concept called the "equilibrium cycle" and its practical applications in ride-hailing platforms. Learn about this innovative set-valued solution concept that captures oscillatory game dynamics, particularly useful in discontinuous games where traditional Nash equilibrium best responses may not exist. Discover how equilibrium cycles satisfy three key properties: stability against external deviations, instability against internal deviations, and minimality, while generalizing the classical minimal curb set concept to discontinuous games. Examine the relationship between equilibrium cycles and strongly connected sink components in finite games through the best response graph framework. Explore practical examples from economics literature and see how this theoretical framework applies to analyzing competing ride-hailing platforms. Gain insights into how this research bridges queueing theory, applied probability, game theory, and control theory to address complex design and resource allocation problems in modern networked systems and service platforms.