The recent globalization and emergence of multinational corporations turned many major economic activities into dynamic interactive endeavors. The number of decision makers involved is relatively small and it leads to significant strategic interdependence. With human life being lived over time, and institutions like markets, firms, and governments changing over time, the economic system is definitely a dynamic interactive entity. Section 2.1 provides a general overview of dynamic interactive economic systems. Market outcomes under open-loop equilibria are investigated in Sect. 2.2 and those under feedback equilibria are examined in Sect. 2.3. An extension of the analysis to a stochastic framework is provided in Sect. 2.4.

Original languageEnglish
Title of host publicationSUBGAME CONSISTENT ECONOMIC OPTIMIZATION: AN ADVANCED COOPERATIVE DYNAMIC GAME ANALYSIS
PublisherBirkhäuser Verlag AG
Pages7-45
Number of pages39
Edition9780817682613
ISBN (Print)978-0-8176-8261-3
DOIs
StatePublished - 1 Jan 2012

Publication series

NameStatic and Dynamic Game Theory: Foundations and Applications
Number9780817682613
ISSN (Print)2363-8516
ISSN (Electronic)2363-8524

    Research areas

  • Advertising effort, Differential game, Nash equilibrium, Resource stock, Stochastic differential game

    Scopus subject areas

  • Statistics, Probability and Uncertainty
  • Statistics and Probability
  • Applied Mathematics

ID: 36952361