The solution formula for the payoff distribution procedure of a bargaining problem in a cooperative differential game with nontransferable payoffs that lead to a time consistent outcome is proposed by Leon A. Petrosyan and D. W. K. Yeung (2014). In this paper we study this formula for linear-quadratic discrete-time dynamic games with nontransferable payoffs. Pareto-optimal solution is studied as optimality principle. The time consistency and irrational behavior proof condition of this solution are investigated. As an example the government debt stabilization game is considered.
Original languageEnglish
Title of host publicationA time-consistent solution formula for linear-quadratic discrete-time dynamic games with nontransferable payoffs
PublisherИздательство Санкт-Петербургского университета
Pages289–299
StatePublished - 2015

    Research areas

  • linear-quadratic games, discrete-time games, games with nontransferable payoffs, Pareto-optimal solution, time consistency, PDP, irrational behavior proof condition

ID: 4746561