The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Differential Games

  • Simone Clemhout
  • Henry Y. WanJr.
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_75

Abstract

A differential game studies system dynamics determined by the interactions of agents with divergent purposes. As a limit form of multi-stage games, its non-cooperative solution is subgame perfect; thus it may facilitate the study of credible threats and repeated play. Reducing each stage to a single point in continuous time, differential game applies control theoretic tools (including phase diagrams) to yield results more general and more detailed than other methods. Its applications range from common-property resource utilization to macro-economic stabilization.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Simone Clemhout
    • 1
  • Henry Y. WanJr.
    • 1
  1. 1.