On the Time Consistency of Equilibria in Additively Separable Differential Games
The relationship amongst state-redundancy and time consistency of differential games is investigated. A class of state-redundant games is detected, where the state dynamics and the payoff functions of all players are additively separable w.r.t. control variables. We prove that, in this class of games, open-loop Nash and degenerate feedback Stackelberg equilibria coincide, both being subgame perfect. This allows us to bypass the issue of the time inconsistency that typically affects the open-loop Stackelberg solution.
|Date of creation:||Mar 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:629. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dipartimento Scienze Economiche, Universita' di Bologna)
If references are entirely missing, you can add them using this form.