Subgame Consistent Economic Optimization: An Advanced Cooperative Dynamic Game Analysis (Static & Dynamic Game Theory: Foundations & Applications) - Hardcover

Yeung, David W.K.; Petrosyan, Leon A.

Hardcover

ISBN 10: 0817682619 ISBN 13: 9780817682613

Publisher: Birkhäuser, 2011

Synopsis

Various imperfections in existing market systems prevent the free market from serving as a truly efficient allocation mechanism, but optimization of economic activities provides an effective remedial measure. Cooperative optimization claims that socially optimal and individually rational solutions to decision problems involving strategic action over time exist. To ensure that cooperation will last throughout the agreement period, however, the stringent condition of subgame consistency is required.

This textbook presents a study of subgame consistent economic optimization, developing game-theoretic optimization techniques to establish the foundation for an effective policy menu to tackle the suboptimal behavior that the conventional market mechanism fails to resolve.

About this title

About the Author

David W. K. Yeung is Distinguished Research Professor and Head of Business Administration at Hong Kong Shue Yan University, and the Kantorovich Research Chair in Stochastic Differential Games and co-director of the Centre of Game Theory at Saint Petersburg State University. He is also Distinguished Honorary Professor of Qingdao University - an honor he received along with Nobel laureates John Nash, Reinhard Selten, and Robert Aumann. Yeung’s main areas of research are game theory, optimization, and stochastic processes. He serves as Managing Editor of International Game Theory Review, Guest Editor of Annals of Operations Research, Associate Editor of Dynamic Games and Applications, and Editorial Board Member of Mathematical Game Theory & Applications. Yeung has published extensively in world-renowned science journals, in particular, Automatica, Journal of Optimization Theory and Applications, Annals of Operations Research, European Journal of Operational Research, International Game Theory Review, and Mathematical Biosciences.

From the Back Cover

The prevalence of imperfect structures, externalities, and imperfect information in existing market systems prevents the market from serving as an efficient mechanism for resource allocation. In the presence of such failures, optimization of economic activities provides an effective remedial measure. Cooperative optimization suggests the possibility of socially optimal and individually rational solutions to decision problems involving strategic action over time; however, to guarantee that cooperation will last throughout the agreement period, the stringent condition of subgame consistency is required.

This textbook presents a treatise on subgame consistent economic optimization, developing game-theoretic optimization techniques to establish the foundation for an effective policy menu to tackle sub-optimal circumstances that the conventional market mechanism fails to resolve. Topics covered include:

* dynamic optimization;

* group optimality and individual rationality;

* time (optimal-trajectory-subgame) consistent economic optimization;

* dynamic economic optimization under uncertainty and subgame consistency;

* dynamically stable joint ventures;

* collaborative environmental management;

* discrete-time subgame consistent economic optimization.

This is the first book to thoroughly address the topic of subgame consistent economic optimization. It will be of particular interest as a research reference for game theorists, economists, mathematicians, policy makers, and corporate planners. With ample problems and exercises, it is also a useful text for graduate students in game theory.

Edition details

• Publisher: Birkhäuser
• Publication date: 2011
• ISBN 10: 0817682619
• ISBN 13: 9780817682613
• Binding: Hardcover
• Language: English
• Number of pages: 411