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Team Theory and Information Structures of Stochastic Dynamic Decentralized Decision

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Coordination Control of Distributed Systems

Part of the book series: Lecture Notes in Control and Information Sciences ((LNCIS,volume 456))

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Abstract

In this chapter, we discuss the application of Girsanov’s measure transformation in generalizing static team theory to dynamic team theory of stochastic dynamic decision systems with nonclassical information structures. We apply Girsanov’s measure transformation to obtain an equivalent decision system under a reference probability measure, in which the corresponding observations and information structures available for decisions are not affected by any of the team decisions, so that static team theory is directly applicable. We also present necessary and sufficient team and person-by-person (PbP) optimality conditions, which are described in terms of backwards stochastic differential equations (BSDEs) and conditional Hamiltonian functionals.

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Author information

Authors and Affiliations

  1. University of Cyprus, 75 Kallipoleos, P.O. Box 20537, 1678, Nicosia, Cyprus

    C. D. Charalambous

  2. University of Ottawa, School of Engineering and Computer Science, 161 Louis Pasteur, Ottawa, Canada

    N. U. Ahmed

Authors
  1. C. D. Charalambous
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  2. N. U. Ahmed
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Corresponding author

Correspondence to C. D. Charalambous .

Editor information

Editors and Affiliations

  1. Delft Institute of Applied Mathematics, Delft University of Technology, Delft, The Netherlands

    Jan H. van Schuppen

  2. Dipartimento d'Informatica, UniversitĂ  degli studi di Verona, Verona, Italy

    Tiziano Villa

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Charalambous, C.D., Ahmed, N.U. (2015). Team Theory and Information Structures of Stochastic Dynamic Decentralized Decision. In: van Schuppen, J., Villa, T. (eds) Coordination Control of Distributed Systems. Lecture Notes in Control and Information Sciences, vol 456. Springer, Cham. https://doi.org/10.1007/978-3-319-10407-2_19

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  • DOI: https://doi.org/10.1007/978-3-319-10407-2_19

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-10406-5

  • Online ISBN: 978-3-319-10407-2

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