Durable-Strategies Dynamic Games: Theory, Solution Techniques and Applications

Durable strategies that have prolonged effects are prevalent in real-world situations. Revenue-generating investments, toxic waste disposal, long-lived goods, regulatory measures, coalition agreements, diffusion of knowledge, advertisement and investments to accumulate physical capital are concrete and common examples of durable strategies. This book provides an augmentation of dynamic game theory and advances a new game paradigm with durable strategies in decision-making schemes. It covers theories, solution techniques, and the applications of a general class of dynamic games with multiple durable strategies. Non-cooperative equilibria and cooperative solutions are derived, along with advanced topics including random termination, asynchronous game horizons, and stochastic analysis. The techniques presented here will enable readers to solve numerous practical dynamic interactive problems with durable strategies.

This book not only expands the scope of applied dynamic game theory, but also provides a solid foundation for further theoretical and technical advancements. As such, it will appeal to scholars and students of quantitative economics, game theory, operations research, and computational mathematics.

＂Not too many new concepts have been introduced in dynamic games since their inception. The introduction of the concept of durable strategies changes this trend and yields important contributions to environmental and business applications.＂

Dusan M Stipanovic, Professor, University of Illinois at Urbana-Champaign

＂Before this book, the field simply did not realize that most of our strategies are durable and entail profound effects in the future. Putting them into the mathematical framework of dynamic games is a great innovative effort.＂

Vladimir Turetsky, Professor, Ort Braude College

＂Durable-strategies Dynamic Games is truly a world-leading addition to the field of dynamic games. It is a much needed publication to tackle increasingly crucial problems under the reality of durable strategies.＂

Vladimir Mazalov, Director of Mathematical Research, Russian Academy of Sciences & President of the International Society of Dynamic Games

David W. K. Yeung is a Distinguished Research Professor and Head of Department of Economics and Finance at Hong Kong Shue Yan University, and Kantorovich Research Chair in Stochastic Differential Games and Co-director of Centre of Game Theory at Saint Petersburg State University, Russia. He is also Distinguished Honorary Professor of Qingdao University, China, an honor he received along with Nobel laureates John Nash, Reinhard Selten, Robert Aumann and Lloyd Shapley.
Leon Petrosjan is a Professor of Applied Mathematics and Head of the Department of Mathematical Game theory and Statistical Decision Theory at the St. Petersburg University, Russia.