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Dynamic Bargaining and Time-Consistency in Linear-State and Homogeneous Linear-Quadratic Cooperative Differential Games

Author

Listed:
  • Jesús Marín-Solano

    (Department de Matemà tica Econòmica, Financera i Actuarial and BEAT, Universitat, de Barcelona, Barcelona 08034, Spain)

Abstract

Three different solution concepts are reviewed and computed for linear-state and homogeneous linear-quadratic cooperative differential games with asymmetric players. Discount rates can be nonconstant and/or different. Special attention is paid to the issues of time-consistency, agreeability and subgame-perfectness, both from the viewpoint of sustainability of cooperation and from the credibility of the announced equilibrium strategies.

Suggested Citation

  • Jesús Marín-Solano, 2021. "Dynamic Bargaining and Time-Consistency in Linear-State and Homogeneous Linear-Quadratic Cooperative Differential Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-24, December.
    • Handle: RePEc:wsi:igtrxx:v:23:y:2021:i:04:n:s0219198922500037
    DOI: 10.1142/S0219198922500037
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