Durable Strategies Dynamic Games

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." Dušan M Stipanović, 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

Fundamentals; Two-Person Games; Larger Numbers and Uncertainty; Games in Extensive Form and Repeated Play; Cooperation; Behavioral Game Theory; Selected Applications.

A recent line of research in environmental and resource economics deals with the analysis of the so-called product-related environmental policy, i.e. the regulation of certain product characteristics which are mainly determined by producers and which influence the impact of consumption goods on the environment. In this line of literature, only little attention has been paid to the role of product durability. The present study aims at filling this gap. It investigates the relationship between (built-in) product durability, production emissions, solid consumption waste and recycling. The main task is to identify inefficiencies in the durability choice of producers and to assess regulatory policies which aim at correcting for such market failure.

Dynamic game theory serves the purpose of including strategic interaction in decision making and is therefore often applied to economic problems. This book presents the state-of-the-art and directions for future research in dynamic game theory related to economics. It was initiated by contributors to the 12th Viennese Workshop on Optimal Control, Dynamic Games and Nonlinear Dynamics and combines a selection of papers from the workshop with invited papers of high quality.

Written for majors courses in economics, business, political science, and international relations, but accessible to students across the undergraduate spectrum, Joseph Harrington's innovative textbook makes the tools and applications of game theory and strategic reasoning both fascinating and easy to understand. Each chapter focuses a specific strategic situation as a way of introducing core concepts informally at first, then more fully, with a minimum of mathematics. At the heart of the book is a diverse collection of strategic scenarios, not only from business and politics, but from history, fiction, sports, and everyday life as well. With this approach, students don't just learn clever answers to puzzles, but instead acquire genuine insights into human behavior

Handbook of the Economics of Marketing, Volume One: Marketing and Economics mixes empirical work in industrial organization with quantitative marketing tools, presenting tactics that help researchers tackle problems with a balance of intuition and skepticism. It offers critical perspectives on theoretical work within economics, delivering a comprehensive, critical, up-to-date, and accessible review of the field that has always been missing. This literature summary of research at the intersection of economics and marketing is written by, and for, economists, and the book's authors share a belief in analytical and integrated approaches to marketing, emphasizing data-driven, result-oriented, pragmatic strategies. Helps academic and non-academic economists understand recent, rapid changes in the economics of marketing Designed for economists already convinced of the benefits of applying economics tools to marketing Written for those who wish to become quickly acquainted with the integration of marketing and economics

This textbook presents worked-out exercises on game theory with detailed step-by-step explanations. While most textbooks on game theory focus on theoretical results, this book focuses on providing practical examples in which students can learn to systematically apply theoretical solution concepts to different fields of economics and business. The text initially presents games that are required in most courses at the undergraduate level and gradually advances to more challenging games appropriate for masters level courses. The first six chapters cover complete-information games, separately analyzing simultaneous-move and sequential-move games, with applications in industrial economics, law, and regulation. Subsequent chapters dedicate special attention to incomplete information games, such as signaling games, cheap talk games, and equilibrium refinements, emphasizing common steps and including graphical illustrations to focus students’ attention on the most relevant payoff comparisons at each point of the analysis. In addition, exercises are ranked according to their difficulty, with a letter (A-C) next to the exercise number. This allows students to pace their studies and instructors to structure their classes accordingly. By providing detailed worked-out examples, this text gives students at various levels the tools they need to apply the tenets of game theory in many fields of business and economics. This text is appropriate for introductory-to-intermediate courses in game theory at the upper undergraduate and master’s level.

A comprehensive, self-contained survey of the theory and applications of differential games, one of the most commonly used tools for modelling and analysing economics and management problems which are characterised by both multiperiod and strategic decision making. Although no prior knowledge of game theory is required, a basic knowledge of linear algebra, ordinary differential equations, mathematical programming and probability theory is necessary. Part One presents the theory of differential games, starting with the basic concepts of game theory and going on to cover control theoretic models, Markovian equilibria with simultaneous play, differential games with hierarchical play, trigger strategy equilibria, differential games with special structures, and stochastic differential games. Part Two offers applications to capital accumulation games, industrial organization and oligopoly games, marketing, resources and environmental economics.