On Durable-strategies Dynamic Game Theory

Authors

  • David W. K. Yeung Hong Kong Shue Yan University; St. Petersburg State University
  • Yingxuan Zhang Hong Kong Shue Yan University

DOI:

https://doi.org/10.21638/11701/spbu31.2022.23

Abstract

An empirically meaningful theory of dynamic games has to incorporate real-life phenomena. Durable strategies, which effects last for a period of time, are prevalent in real-life situations. Revenue generating investments, toxic waste disposal and purchase of durable goods are common examples of durable strategies. This paper first provides a review on durable-strategies dynamic game theory. A practically relevant advancement - random horizon durable-strategies dynamic games - yielding novel results in durable-strategies dynamic games theory is then presented. Dynamic optimization theorem, game formulations and HJB equations are derived. An illustrative example is provided. The theory and solution mechanism of durable-strategies cooperative dynamic games are also discussed.

Keywords:

dynamic game, durable-strategies, random horizon

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References

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Yeung, D. W. K. and Petrosyan, L. A. (2021a).Asynchronous Horizons Durable-strategies Dynamic Games and Tragedy of Cross-generational Environmental Commons. International Game Theory Review, 23(4). https://doi.org/10.1142/S0219198921500201

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Yeung, D. W. K. and Petrosyan, L. A. (2022). Durable-strategies Dynamic Games: Theory, Solution Techniques and Applications. Springer International Publishing, Cham, Switzerland

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Published

2023-01-27

How to Cite

Yeung, D. W. K., & Zhang, Y. (2023). On Durable-strategies Dynamic Game Theory. Contributions to Game Theory and Management, 15, 311–324. https://doi.org/10.21638/11701/spbu31.2022.23

Issue

Vol. 15 (2022)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.