TY - JOUR

T1 - Subgame Consistent Solutions for Cooperative Stochastic Dynamic Games

AU - Yeung, D. W. K.

AU - Petrosyan, L. A.

PY - 2010/6

Y1 - 2010/6

N2 - In cooperative games over time with uncertainty, a stringent condition (subgame consistency) is required for a dynamically stable solution. In particular, a cooperative solution is subgame consistent if an extension of the solution policy to a situation with a later starting time and any feasible state brought about by prior optimal behavior would remain optimal. This paper derives an analytically tractable payoff distribution procedure leading to the realization of subgame consistent solutions in cooperative stochastic dynamic games. This is the first time that subgame consistent solutions in discrete-time dynamic games under uncertainty are provided.

AB - In cooperative games over time with uncertainty, a stringent condition (subgame consistency) is required for a dynamically stable solution. In particular, a cooperative solution is subgame consistent if an extension of the solution policy to a situation with a later starting time and any feasible state brought about by prior optimal behavior would remain optimal. This paper derives an analytically tractable payoff distribution procedure leading to the realization of subgame consistent solutions in cooperative stochastic dynamic games. This is the first time that subgame consistent solutions in discrete-time dynamic games under uncertainty are provided.

KW - Cooperative stochastic dynamic games

KW - Dynamic stability

KW - Subgame consistency

U2 - 10.1007/s10957-010-9702-5

DO - 10.1007/s10957-010-9702-5

M3 - статья

VL - 145

SP - 579

EP - 596

JO - Journal of Optimization Theory and Applications

JF - Journal of Optimization Theory and Applications

SN - 0022-3239

IS - 3

ER -