Theory and Applications of Dynamic Games

This textbook provides a comprehensive overview of noncooperative and cooperative dynamic games involving uncertain parameter values, with the stochastic process being described by an event tree. Primarily intended for graduate students of economics, management science and engineering, the book is self-contained, as it defines and illustrates all relevant concepts originally introduced in static games before extending them to a dynamic framework. It subsequently addresses the sustainability of cooperative contracts over time and introduces a range of mechanisms to help avoid such agreements breaking down before reaching maturity. To illustrate the concepts discussed, the book provides various examples of how dynamic games played over event trees can be applied to environmental economics, management science, and engineering.
"This is an excellent textbook on an important sub-area of dynamic games, viz., dynamic games over event trees. With its clarity of exposition and wealth of information, it is bound to draw many young researchers to this fascinating area and have a lasting impact."
Vivek Borkar, Indian Institute of Technology Bombay, India

"An advanced textbook on dynamic games played on event trees is long overdue. This book, written by leading experts in the field, will be of great use to modellers of economic behaviour under uncertainty. No doubt it will soon become a classic."

Alain Haurie, University of Geneva, and GERAD/HEC Montréal

"This book by Parilina, Reddy, and Zaccour provides a well-organized treatment of dynamic games on event trees under cooperative as well as noncooperative modes of play, constituting possibly the first such comprehensive study of this topic in text-book form."

Tamer Başar, University of Illinois, USA