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Contributions to Game Theory and Management, 2014, Volume 7, Pages 404–414
(Mi cgtm249)
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Subgame consistent cooperative solution of stochastic dynamic game of public goods provision
David W. K. Yeungab, Leon A. Petrosyanc a Department of Business Administration, Hong Kong Shue Yan
University, Hong Kong
b Center of Game Theory, St. Petersburg State University, St. Petersburg, Russia
c Faculty of Applied Mathematics-Control Processes, Saint Petersburg
State University, St. Petersburg, Russia
Abstract:
The provision of public goods constitutes a classic case of market failure which calls for cooperative optimization. However, cooperation cannot be sustainable unless there is guarantee that the agreed-upon optimality principle can be maintained throughout the planning duration. This paper derives subgame consistent cooperative solutions for public goods provision by asymmetric agents with transferable payoffs in a stochastic discrete-time dynamic game framework. This is the first time that dynamic cooperative game in public goods provision is analysed.
Keywords:
Public goods, stochastic dynamic games, dynamic cooperation, subgame consistency.
Citation:
David W. K. Yeung, Leon A. Petrosyan, “Subgame consistent cooperative solution of stochastic dynamic game of public goods provision”, Contributions to Game Theory and Management, 7 (2014), 404–414
Linking options:
https://www.mathnet.ru/eng/cgtm249 https://www.mathnet.ru/eng/cgtm/v7/p404
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Abstract page: | 221 | Full-text PDF : | 75 | References: | 44 |
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