On the Coincidence of the Feedback Nash and Stackelberg Equilibria in Economic Applications of Differential Games
In this paper the scope of the applicability of the Stackelberg equilibrium concept in differential games is investigated. Firstly, conditions for obtaining the coincidence between the Stackelberg and Nash equilibria are defined in terms of the instantaneous pay-off function and the state equation of the game. Secondly, it is showed that for a class of differential games with state-interdependence both equilibria are identical independently of the player being the leader of the game. A survey of different economic models shows that this coincidence is going to occur for a good number of economic applications of differential games. This result appears because of the continuous-time setting in which differential games are defined. In this setting the first movement advantage of the leader may disappear and the both equilibria coincide.
|Date of creation:||2003|
|Contact details of provider:|| Postal: c/ Bailén 50. 41001 Sevilla|
Phone: (34) 955 055 210
Fax: (34) 955 055 211
Web page: http://www.centrodeestudiosandaluces.es
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tsutsui, Shunichi O., 1996. "Capacity constraints and voluntary output cutback in dynamic Cournot competition," Journal of Economic Dynamics and Control, Elsevier, vol. 20(9-10), pages 1683-1708.
- van der Ploeg, F & de Zeeuw, A J, 1990.
"Perfect Equilibrium in a Model of Competitive Arms Accumulation,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 131-146, February.
- van der Ploeg, F. & de Zeeuw, A.J., 1988. "Perfect equilibrium in a model of competitive arms accumulation," Discussion Paper 1988-4, Tilburg University, Center for Economic Research.
- van der Ploeg, F. & de Zeeuw, A.J., 1987. "Perfect equilibrium in a model of competitive arms accumulation," Research Memorandum FEW 266, Tilburg University, School of Economics and Management.
- List, John A. & Mason, Charles F., 2001. "Optimal Institutional Arrangements for Transboundary Pollutants in a Second-Best World: Evidence from a Differential Game with Asymmetric Players," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 277-296, November.
- Santiago J. Rubio & Luisa Escriche, 1998.
"- Strategic Pigouvian Taxation, Stock Externalities And Polluting Non-Renewable Resources,"
Working Papers. Serie EC
1998-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Rubio, Santiago J. & Escriche, Luisa, 2001. "Strategic pigouvian taxation, stock externalities and polluting non-renewable resources," Journal of Public Economics, Elsevier, vol. 79(2), pages 297-313, February.
- Wirl, Franz & Dockner, Engelbert, 1995. "Leviathan governments and carbon taxes: Costs and potential benefits," European Economic Review, Elsevier, vol. 39(6), pages 1215-1236, June.
- Tsutsui, Shunichi & Mino, Kazuo, 1990. "Nonlinear strategies in dynamic duopolistic competition with sticky prices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 136-161, October.
- Fershtman, Chaim & Kamien, Morton I, 1987. "Dynamic Duopolistic Competition with Sticky Prices," Econometrica, Econometric Society, vol. 55(5), pages 1151-1164, September.
- Driskill, Robert A. & McCafferty, Stephen, 1989. "Dynamic duopoly with adjustment costs: A differential game approach," Journal of Economic Theory, Elsevier, vol. 49(2), pages 324-338, December.
- Fershtman, Chaim & Nitzan, Shmuel, 1991.
"Dynamic voluntary provision of public goods,"
European Economic Review,
Elsevier, vol. 35(5), pages 1057-1067, July.
- Gradus, R.H.J.M., 1990. "Optimal dynamic profit taxation : The derivation of feedback Stackelberg equilibria," Research Memorandum 9a5b8f5f-ba90-45ae-9a17-4, Tilburg University, School of Economics and Management.
- Benhabib, Jess & Radner, Roy, 1992. "The Joint Exploitation of a Productive Asset: A Game-Theoretic Approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(2), pages 155-190, April.
- M. Simaan & J. B. Cruz, 1975. "Formulation of Richardson's Model of Arms Race from a Differential Game Viewpoint," Review of Economic Studies, Oxford University Press, vol. 42(1), pages 67-77.
- Zagonari, Fabio, 1998. "International Pollution Problems: Unilateral Initiatives by Environmental Groups in One Country," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 46-69, July.
- Itaya, Jun-ichi & Shimomura, Koji, 2001.
"A dynamic conjectural variations model in the private provision of public goods: a differential game approach,"
Journal of Public Economics,
Elsevier, vol. 81(1), pages 153-172, July.
- Jun-ichi Itaya & Koji Shimomura, 1999. "A Dynamic Conjectural Variations Model in the Private Provision of Public Goods: a Differential Game Approach," Discussion Paper Series 104, Research Institute for Economics & Business Administration, Kobe University.
- Reynolds, Stanley S., 1991. "Dynamic oligopoly with capacity adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 15(3), pages 491-514, July.
- Piga, Claudio A. G., 2000. "Competition in a duopoly with sticky price and advertising," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 595-614, May.
- Van Der Ploeg, F. & De Zeeuw, A.J., 1990.
"International Aspects Of Pollution Control,"
9065, Tilburg - Center for Economic Research.
- Dockner, Engelbert J. & Sorger, Gerhard, 1996. "Existence and Properties of Equilibria for a Dynamic Game on Productive Assets," Journal of Economic Theory, Elsevier, vol. 71(1), pages 209-227, October.
- de Zeeuw, Aart J. & van der Ploeg, Frederick, 1987. "Perfect Equilibrium in a Competitive Model of Arms Accumulation," CEPR Discussion Papers 206, C.E.P.R. Discussion Papers.
- Tahvonen, Olli, 1996. "Trade with Polluting Nonrenewable Resources," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 1-17, January.
- Fershtman, Chaim & Muller, Eitan, 1984.
"Capital accumulation games of infinite duration,"
Journal of Economic Theory,
Elsevier, vol. 33(2), pages 322-339, August.
- Dockner, Engelbert & Feichtinger, Gustav & Mehlmann, Alexander, 1989. "Noncooperative solutions for a differential game model of fishery," Journal of Economic Dynamics and Control, Elsevier, vol. 13(1), pages 1-20, January.
- Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, December.
- Dockner, Engelbert J, 1992. "A Dynamic Theory of Conjectural Variations," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 377-395, December.
- Deger, Saadet & Sen, Somnath, 1984. "Optimal control and differential game models of military expenditure in less developed countries," Journal of Economic Dynamics and Control, Elsevier, vol. 7(2), pages 153-169, May.
- Franz Wirl, 1995. "The exploitation of fossil fuels under the threat of global warming and carbon taxes: A dynamic game approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(4), pages 333-352, June.
- Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
- Wirl Franz, 1994. "Pigouvian Taxation of Energy for Flow and Stock Externalities and Strategic, Noncompetitive Energy Pricing," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 1-18, January.
- Rubio, Santiago J. & Casino, Begona, 2001. "Competitive versus efficient extraction of a common property resource: The groundwater case," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1117-1137, August.
When requesting a correction, please mention this item's handle: RePEc:cea:doctra:e2003_40. 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: (Susana Mérida)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.