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Nontransferable Utility Cooperative Dynamic Games

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Handbook of Dynamic Game Theory

Abstract

Cooperation in an inter-temporal framework under nontransferable utility/payoffs (NTU) presents a highly challenging and extremely intriguing task to game theorists. This chapter provides a coherent analysis on NTU cooperative dynamic games. The formulations of NTU cooperative dynamic games in continuous time and in discrete time are provided. The issues of individual rationality, Pareto optimality, and an individual player’s payoff under cooperation are presented. Monitoring and threat strategies preventing the breakup of the cooperative scheme are presented. Maintaining the agreed-upon optimality principle in effect throughout the game horizon plays an important role in the sustainability of cooperative schemes. The notion of time (subgame optimal trajectory) consistency in NTU differential games is expounded. Subgame consistent solutions in NTU cooperative differential games and subgame consistent solutions via variable payoff weights in NTU cooperative dynamic games are provided.

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Acknowledgements

Financial support by the Russian Science Foundation (grant 17-11-01079) is gratefully acknowledged.

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Authors and Affiliations

  1. SRS Consortium for Advanced Study in Dynamic Games, Hong Kong Shue Yan University, Braemar Hill, North Point, Hong Kong, China

    David W. K. Yeung

  2. Faculty of Applied Mathematics-Control Processes, St Petersburg State University, St Petersburg, Russia

    Leon A. Petrosyan

Authors
  1. David W. K. Yeung
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  2. Leon A. Petrosyan
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Corresponding author

Correspondence to David W. K. Yeung .

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Editors and Affiliations

  1. Coordinated Science Laboratory and Department of Electrical and Computer Engineering, University of Illinois at Urbana-Champaign, Urbana, Illinois, USA

    Tamer Başar

  2. Department of Decision Sciences GERAD, HEC Montréal, Montreal, Québec, Canada

    Georges Zaccour

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Yeung, D.W.K., Petrosyan, L.A. (2018). Nontransferable Utility Cooperative Dynamic Games. In: Başar, T., Zaccour, G. (eds) Handbook of Dynamic Game Theory. Springer, Cham. https://doi.org/10.1007/978-3-319-44374-4_13

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