Pareto optimality and Nash equilibrium for building stable systems

Abstract

This paper introduces a design approach based on system analysis and game theory for the identification of architectural equilibrium which guarantees the stability of the system being designed and its environment after the integration. We introduce multi-objective optimization and game theory, and their links with systems engineering through mathematical models. While Pareto optimality is used to select best architectures and to support independent decisions, Nash equilibrium is used to find out architectural equilibrium and to support interdependent decisions. This approach was illustrated previously in a case study.