TIME-CONSISTENT AGREEABLE SOLUTIONS IN AN ENVIRONMENTAL POLLUTION GAME

摘要

In differential dynamic games the players involved can increase their payoff by forming coalitions. A cooperative strategy is called agreeable to a player if he receives more payoff than in Nash equilibrium. The time-consistency problem consists of rendering the given player's decision agreeable for every moment of the game, such that no player is tempted to disagree with the coalition's decision. This can be done by means of payoff distribution procedures (PDP). The presented theoretical part is illustrated with an example that deals with global environmental pollution.