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Static & Dynamic Game Theory: Foundations & Applications

Subgame Consistent Economic Optimization

An Advanced Cooperative Dynamic Game Analysis

Authors: Yeung, David W.K., Petrosyan, Leon A.

  • The first title on the topic of subgame consistent economic optimization
  • Illustrates the potential of cooperative dynamic games to help formulate new policy on previously unsolvable market problems
  • Valuable as both a research reference and as a textbook, with exercises included throughout the book
  • Suitable for an interdisciplinary audience of game theorists, economists, mathematicians, policy makers, and corporate planners
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eBook $59.99
price for USA (gross)
  • ISBN 978-0-8176-8262-0
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $79.99
price for USA
  • ISBN 978-0-8176-8261-3
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Rent the ebook  
  • Rental duration: 1 or 6 month
  • low-cost access
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About this Textbook

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 the authors

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.

Reviews

“The book is a comprehensive treatise on subgame consistent economic optimization. It is an important methodological contribution to the research on consistency and dynamic stability of cooperative strategies, developed originally by the authors. … The book is well organized and clear; moreover, it provides an extensive reference list to the relevant economic differential game literature.” (Bruno Viscolani, Mathematical Reviews, January, 2013)


“This book, authored by 2 leading international experts of game theory, provides the most comprehensive survey, possibly the only comprehensive survey, of the most important issues in subgame consistent game theory based optimisation for the serious academics and professionals in the areas of game theory and optimisation.  This is certainly the first and best book on subgame consistent economic optimization and the related game theoretic issues. This book is a major contribution to the literature on game theory, optimisation, and information economics. A very interesting and useful book!” (Dr. Sardar M. N. Islam  Ph. D., LL. B., Professor of Business, Economics and Finance, Victoria University, Australia)

“The text is truly a world-leading treatise in the field of dynamically consistent economic optimization and a Russian classic in mathematics and economics. It is a timely publication to tackle the increasingly crucial issues of consistency and dynamic stability in collaborative activities in the economic arena. The elegant mathematics developed by the authors and their [useful] applications in economics are prevalent in the analysis. The text expanded L. V. Kantorovich’s award-winning work in economic optimization significantly in the new directions of game-theoretic interaction, dynamic evolution, stochasticity, and subgame consistency.” (Vladimir Mazalov, Director of Karelian Institute of Applied Mathematical Research, Russian Academy of Sciences)

Table of contents (13 chapters)

  • Introduction

    Yeung, David W. K. (et al.)

    Pages 1-5

  • Dynamic Strategic Interactions in Economic Systems

    Yeung, David W. K. (et al.)

    Pages 7-45

  • Dynamic Economic Optimization: Group Optimality and Individual Rationality

    Yeung, David W. K. (et al.)

    Pages 47-76

  • Time Consistency and Optimal-Trajectory-Subgame Consistent Economic Optimization

    Yeung, David W. K. (et al.)

    Pages 77-110

  • Dynamically Stable Cost-Saving Joint Venture

    Yeung, David W. K. (et al.)

    Pages 111-146

Buy this book

eBook $59.99
price for USA (gross)
  • ISBN 978-0-8176-8262-0
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $79.99
price for USA
  • ISBN 978-0-8176-8261-3
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Rent the ebook  
  • Rental duration: 1 or 6 month
  • low-cost access
  • online reader with highlighting and note-making option
  • can be used across all devices
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Bibliographic Information

Bibliographic Information
Book Title
Subgame Consistent Economic Optimization
Book Subtitle
An Advanced Cooperative Dynamic Game Analysis
Authors
Series Title
Static & Dynamic Game Theory: Foundations & Applications
Copyright
2012
Publisher
Birkhäuser Basel
Copyright Holder
Birkhäuser Boston
eBook ISBN
978-0-8176-8262-0
DOI
10.1007/978-0-8176-8262-0
Hardcover ISBN
978-0-8176-8261-3
Series ISSN
2363-8516
Edition Number
1
Number of Pages
XVI, 395
Number of Illustrations and Tables
2 b/w illustrations
Topics