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In many instances, players find it individually and collectively rational to sign a long-term cooperative agreement. A major concern in such a setting is how to ensure that each player will abide by her commitment as time goes by. This will occur if each player still finds it individually rational at any intermediate instant of time to continue to implement her cooperative control rather than switch to a noncooperative control. If this condition is satisfied for all players, then we say that the agreement is time consistent. This chapter deals with the design of schemes that guarantee time consistency in deterministic differential games with transferable payoffs.
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