ENGLISH

Subgame Consistent Economic Optimization: An Advanced Cooperative Dynamic Game Analysis

By David W.K. Yeung , Leon A. Petrosyan (auth.)

Book information

Publisher
Birkhäuser Basel
Year
2012
ISBN
0817682619, 9780817682613
DOI
10.1007/978-0-8176-8262-0
Google Books ID
RnpsF_Q3hUMC
Language
english
Format
PDF
Filesize
3 MB (2965443 bytes)
Series
Static & Dynamic Game Theory: Foundations & Applications
Edition
1
Pages
395\412
Orientation
yes
Scanned
no
Time added
2012-03-09 12:00:00
EconomicsGame TheorySocial and Behav. Sciences; Game Theory/Mathematic

Description

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.

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