A substitute for the classical Neumann-Morgenstern characteristic function in cooperative differential games

DOI10.3934/JDG.2020007zbMATH Open1447.91010arXiv1907.07528OpenAlexW3019979546MaRDI QIDQ2197183FDOQ2197183

Authors: Yanyan Li 

Publication date: 28 August 2020

Published in: Journal of Dynamics and Games (Search for Journal in Brave)

Abstract: In this paper, we present a systematic overview of different endogenous optimization-based characteristic functions and discuss their properties. Furthermore, we define and analyze in detail a new, $eta$-characteristic function. This characteristic function has a substantial advantage over other characteristic functions in that it can be obtained with a minimal computational effort and has a reasonable economic interpretation. In particular, the new characteristic function can be seen as a reduced version of the classical Neumann-Morgenstern characteristic function, where the players both from the coalition and from the complementary coalition use their previously computed strategies instead of solving respective optimization problems. Our finding are illustrated by a pollution control game with $n$ non-identical players. For the considered game, we compute all characteristic functions and compare their properties. Quite surprisingly, it turns out that both the characteristic functions and the resulting cooperative solutions satisfy some symmetry relations.

Full work available at URL: https://arxiv.org/abs/1907.07528

Recommendations

• On a approach to the construction of characteristic function for cooperative differential games
• Characteristic functions of cooperative differential games
• scientific article; zbMATH DE number 3906273
• New method to characterize subgame perfect Nash equilibria in differential games
• Subgame Consistent Solutions for a Class of Cooperative Stochastic Differential Games with Nontransferable Payoffs
• Subgame consistent solutions of a cooperative stochastic differential game with nontransferable payoffs
• scientific article; zbMATH DE number 7349343
• Subgame consistent cooperative solutions in stochastic differential games
• The \(\tau\) value of cooperative games with generalized characteristic functions

zbMATH Keywords

characteristic functioncooperative gamesdifferential gamespollution control

Mathematics Subject Classification ID

Cooperative games (91A12) Differential games and control (49N70) Differential games (aspects of game theory) (91A23) Applications of optimal control and differential games (49N90) Dynamic games (91A25)

Cites Work

• Title not available (Why is that?)
• Title not available (Why is that?)
• Optimal control and viscosity solutions of Hamilton-Jacobi-Bellman equations
• Equal or proportional division of a surplus, and other methods
• COALITION FORMATION GAMES: A SURVEY
• Title not available (Why is that?)
• Title not available (Why is that?)
• Title not available (Why is that?)
• The core of an economy with multilateral environmental externalities
• Time-consistent Shapley value allocation of pollution cost reduction
• Title not available (Why is that?)
• A friendly computable characteristic function
• Sustaining cooperation in a differential game of advertising goodwill accumulation
• A differential game of joint implementation of environmental projects
• On global existence of solutions to coupled matrix Riccati equations in closed-loop Nash games
• Title not available (Why is that?)
• On a class of hybrid differential games
• On the uniqueness of the Nash solution in linear-quadratic differential games
• The Shapley value as a sustainable cooperative solution in differential games of three players
• Characteristic functions in a linear oligopoly TU game
• On a approach to the construction of characteristic function for cooperative differential games
• The recursive core for non-superadditive games

Cited In (11)

• A cooperation scheme in multistage game of renewable resource extraction with asymmetric players
• Cooperative differential games with continuous updating using Hamilton-Jacobi-Bellman equation
• A pollution control problem for the aluminum production in Eastern Siberia: differential game approach
• Cooperative optimality principles in differential games on networks
• The core of cooperative differential games on networks
• Strong time-consistency of a core: an application to the pollution control problem in Eastern Siberia
• Comparison of methods of organization and management efficiency in dynamic models of Cournot oligopoly
• On the symmetry relation between different characteristic functions for additively separable cooperative games
• On a approach to the construction of characteristic function for cooperative differential games
• Computation of characteristic function values for linear-state differential games
• Characteristic functions of cooperative differential games

This page was built for publication: A substitute for the classical Neumann-Morgenstern characteristic function in cooperative differential games

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2197183)