Hi Acer,

thanks very much for your answer. I tried your method. maybe there is a little part needing for modification.

i tried this example

f := x+y;

g := (.5-x)^2*(.7-y)^2

 stage2 := maximize(g, x = 0 .. 1);

stage1 := maximize(eval(f, x = stage2), y = 0 .. 1);

the final result is that

stage 1=1.022500000

this is because y = 1, and x=1, so that g=0.0225 and f=g+x=1.0225

therefore there is an error, f should be f=x+y, not f=x+g

and also if in the second stage only y is decided for maximing g, then the best y for g is y=0 so that g=0.1225 in the condition that x=1, and hence f=1+0=1, because in the first stage y has not been determined yet.

maybe a easier way to understand my model is to consider two firms. Firm A is maximing its profit fucntion f by determine its yields x; after that, Firm B enters the market and determines its output y to maximizing its profit g. these two firms are rivals so that they do not care for each other's profit, but only care for their own's.

Do you have a better idea?

many thanks

Hi Acer,

thanks very much for your answer. I tried your method. maybe there is a little part needing for modification.

i tried this example

f := x+y;

g := (.5-x)^2*(.7-y)^2

 stage2 := maximize(g, x = 0 .. 1);

stage1 := maximize(eval(f, x = stage2), y = 0 .. 1);

the final result is that

stage 1=1.022500000

this is because y = 1, and x=1, so that g=0.0225 and f=g+x=1.0225

therefore there is an error, f should be f=x+y, not f=x+g

and also if in the second stage only y is decided for maximing g, then the best y for g is y=0 so that g=0.1225 in the condition that x=1, and hence f=1+0=1, because in the first stage y has not been determined yet.

maybe a easier way to understand my model is to consider two firms. Firm A is maximing its profit fucntion f by determine its yields x; after that, Firm B enters the market and determines its output y to maximizing its profit g. these two firms are rivals so that they do not care for each other's profit, but only care for their own's.

Do you have a better idea?

many thanks

please, any help?