The paper considers linear-quadratic discrete-time dynamic games with nontransferable payoffs. Pareto-optimal solutionis 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 language
English
Pages (from-to)
384-392
Journal
Contributions to Game Theory and Management
Volume
7
State
Published - 2014
Research areas
LINEAR-QUADRATIC GAMES, DISCRETE-TIME GAMES, GAMES WITH NONTRANSFERABLE PAYOffS, PARETO-OPTIMAL SOLUTION, TIME CONSISTENCY, PDP, IRRATIONAL BEHAVIOR PROOF CONDITION