Discrete–Time Stochastic Control and Dynamic Potential Games

The Euler–Equation Approach

Nonfiction, Science & Nature, Science, Other Sciences, System Theory, Mathematics, Statistics, Reference & Language, Reference
Cover of the book Discrete–Time Stochastic Control and Dynamic Potential Games by David González-Sánchez, Onésimo Hernández-Lerma, Springer International Publishing
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Author: David González-Sánchez, Onésimo Hernández-Lerma ISBN: 9783319010595
Publisher: Springer International Publishing Publication: September 20, 2013
Imprint: Springer Language: English
Author: David González-Sánchez, Onésimo Hernández-Lerma
ISBN: 9783319010595
Publisher: Springer International Publishing
Publication: September 20, 2013
Imprint: Springer
Language: English

​There are several techniques to study noncooperative dynamic games, such as dynamic programming and the maximum principle (also called the Lagrange method). It turns out, however, that one way to characterize dynamic potential games requires to analyze inverse optimal control problems, and it is here where the Euler equation approach comes in because it is particularly well–suited to solve inverse problems. Despite the importance of dynamic potential games, there is no systematic study about them. This monograph is the first attempt to provide a systematic, self–contained presentation of stochastic dynamic potential games.

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​There are several techniques to study noncooperative dynamic games, such as dynamic programming and the maximum principle (also called the Lagrange method). It turns out, however, that one way to characterize dynamic potential games requires to analyze inverse optimal control problems, and it is here where the Euler equation approach comes in because it is particularly well–suited to solve inverse problems. Despite the importance of dynamic potential games, there is no systematic study about them. This monograph is the first attempt to provide a systematic, self–contained presentation of stochastic dynamic potential games.

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