Overview
- 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
- Includes supplementary material: sn.pub/extras
Part of the book series: Static & Dynamic Game Theory: Foundations & Applications (SDGTFA)
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Table of contents (13 chapters)
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Front Matter
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Back Matter
Keywords
About this book
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.
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)
Authors and Affiliations
About the authors
Bibliographic Information
Book Title: Subgame Consistent Economic Optimization
Book Subtitle: An Advanced Cooperative Dynamic Game Analysis
Authors: David W.K. Yeung, Leon A. Petrosyan
Series Title: Static & Dynamic Game Theory: Foundations & Applications
DOI: https://doi.org/10.1007/978-0-8176-8262-0
Publisher: Birkhäuser Boston, MA
eBook Packages: Mathematics and Statistics, Mathematics and Statistics (R0)
Copyright Information: Birkhäuser Boston 2012
Hardcover ISBN: 978-0-8176-8261-3Published: 06 December 2011
eBook ISBN: 978-0-8176-8262-0Published: 07 December 2011
Series ISSN: 2363-8516
Series E-ISSN: 2363-8524
Edition Number: 1
Number of Pages: XVI, 395
Number of Illustrations: 2 b/w illustrations
Topics: Game Theory, Economics, Social and Behav. Sciences, Game Theory, Optimization, Applications of Mathematics