Subgame-consistent cooperative solutions in randomly furcating stochastic differential games

L. A. Petrosyan; David Wing Kay Yeung

doi:10.1016/j.mcm.2006.11.003

Subgame-consistent cooperative solutions in randomly furcating stochastic differential games

L. A. Petrosyan, David Wing Kay Yeung^*

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

13 Citations (Scopus)

Abstract

The paradigm of randomly-furcating stochastic differential games incorporates additional stochastic elements via randomly branching payoffs in stochastic differential games. This paper considers dynamically stable cooperative solutions in randomly furcating stochastic differential games. Analytically tractable payoff distribution procedures contingent upon specific random realizations of the state and payoff structure are derived. This new approach widens the application of cooperative differential game theory to problems where the evolution of the state and future environments are not known with certainty. Important cases abound in regional economic cooperation, corporate joint ventures and environmental control. An illustration in cooperative resource extraction is presented.

Original language	English
Pages (from-to)	1294-1307
Number of pages	14
Journal	Mathematical and Computer Modelling
Volume	45
Issue number	11-12
DOIs	https://doi.org/10.1016/j.mcm.2006.11.003
Publication status	Published - Jun 2007
Externally published	Yes

Scopus Subject Areas

Modelling and Simulation
Computer Science Applications

User-Defined Keywords

Cooperative solution
Dynamic stability
Randomly furcating differential games
Subgame consistency

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10.1016/j.mcm.2006.11.003

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title = "Subgame-consistent cooperative solutions in randomly furcating stochastic differential games",

abstract = "The paradigm of randomly-furcating stochastic differential games incorporates additional stochastic elements via randomly branching payoffs in stochastic differential games. This paper considers dynamically stable cooperative solutions in randomly furcating stochastic differential games. Analytically tractable payoff distribution procedures contingent upon specific random realizations of the state and payoff structure are derived. This new approach widens the application of cooperative differential game theory to problems where the evolution of the state and future environments are not known with certainty. Important cases abound in regional economic cooperation, corporate joint ventures and environmental control. An illustration in cooperative resource extraction is presented.",

keywords = "Cooperative solution, Dynamic stability, Randomly furcating differential games, Subgame consistency",

author = "Petrosyan, {L. A.} and Yeung, {David Wing Kay}",

note = "Funding Information: Financial support from the Research Grant Council of Hong Kong (Grant HKBU2103/04H and Grant FRG/05-06/II-22) are gratefully acknowledged. ",

year = "2007",

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doi = "10.1016/j.mcm.2006.11.003",

language = "English",

volume = "45",

pages = "1294--1307",

journal = "Mathematical and Computer Modelling",

issn = "0895-7177",

publisher = "Elsevier Ltd.",

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T1 - Subgame-consistent cooperative solutions in randomly furcating stochastic differential games

AU - Petrosyan, L. A.

AU - Yeung, David Wing Kay

N1 - Funding Information: Financial support from the Research Grant Council of Hong Kong (Grant HKBU2103/04H and Grant FRG/05-06/II-22) are gratefully acknowledged.

PY - 2007/6

Y1 - 2007/6

N2 - The paradigm of randomly-furcating stochastic differential games incorporates additional stochastic elements via randomly branching payoffs in stochastic differential games. This paper considers dynamically stable cooperative solutions in randomly furcating stochastic differential games. Analytically tractable payoff distribution procedures contingent upon specific random realizations of the state and payoff structure are derived. This new approach widens the application of cooperative differential game theory to problems where the evolution of the state and future environments are not known with certainty. Important cases abound in regional economic cooperation, corporate joint ventures and environmental control. An illustration in cooperative resource extraction is presented.

AB - The paradigm of randomly-furcating stochastic differential games incorporates additional stochastic elements via randomly branching payoffs in stochastic differential games. This paper considers dynamically stable cooperative solutions in randomly furcating stochastic differential games. Analytically tractable payoff distribution procedures contingent upon specific random realizations of the state and payoff structure are derived. This new approach widens the application of cooperative differential game theory to problems where the evolution of the state and future environments are not known with certainty. Important cases abound in regional economic cooperation, corporate joint ventures and environmental control. An illustration in cooperative resource extraction is presented.

KW - Cooperative solution

KW - Dynamic stability

KW - Randomly furcating differential games

KW - Subgame consistency

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U2 - 10.1016/j.mcm.2006.11.003

DO - 10.1016/j.mcm.2006.11.003

M3 - Journal article

AN - SCOPUS:33947162488

SN - 0895-7177

VL - 45

SP - 1294

EP - 1307

JO - Mathematical and Computer Modelling

JF - Mathematical and Computer Modelling

IS - 11-12

ER -

Subgame-consistent cooperative solutions in randomly furcating stochastic differential games

Abstract

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