1. Convergence of strong time-consistent payment schemes in dynamic games.
- Author
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Petrosyan, Leon, Sedakov, Artem, Sun, Hao, and Xu, Genjiu
- Subjects
- *
STOCHASTIC convergence , *GAME theory , *MATHEMATICAL transformations , *LINEAR systems , *MATHEMATICAL analysis - Abstract
The problem of consistency of a solution over time remains an important issue in cooperative dynamic games. Payoffs to players prescribed by an inconsistent solution may not be achievable since such a solution is extremely sensitive to its revision in the course of a game developing along an agreed upon cooperative behavior. The paper proposes a strong time-consistent payment scheme which is stable to a revision of cooperative set solutions, e.g., the core. Using a linear transformation of the solution, it becomes possible to obtain non-negative payments to players. In the paper, we also deal with a limit linear transformation of the solution whose convergence is proved. Developing a non-negative strong time-consistent payment scheme in a closed form, we guarantee that the solution supported by the scheme will not be revised over time. [ABSTRACT FROM AUTHOR]
- Published
- 2017
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