On the Time Consistency of Equilibria in Additively Separable Differential Games

Bacchiega, Emanuele ; Lambertini, Luca ; Palestini, Arsen (2008) On the Time Consistency of Equilibria in Additively Separable Differential Games. Bologna: Dipartimento di Scienze economiche DSE, p. 20. DOI 10.6092/unibo/amsacta/4621. In: Quaderni - Working Paper DSE (629). ISSN 2282-6483.
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Abstract

The relationship amongst state-redundancy and time consistency of differential games is investigated. A class of state-redundant games is detected, where the state dynamics and the payoff functions of all players are additively separable w.r.t. control variables. We prove that, in this class of games, open-loop Nash and degenerate feedback Stackelberg equilibria coincide, both being subgame perfect. This allows us to bypass the issue of the time inconsistency that typically affects the open-loop Stackelberg solution.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Bacchiega, Emanuele
Lambertini, Luca
Palestini, Arsen
Keywords
differential games, time consistency, additive separability
Subjects
ISSN
2282-6483
DOI
Deposit date
16 Feb 2016 14:24
Last modified
16 Feb 2016 14:24
URI

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