Skip to main content
Top
Published in: Dynamic Games and Applications 2/2018

03-04-2017

Potential Differential Games

Authors: Alejandra Fonseca-Morales, Onésimo Hernández-Lerma

Published in: Dynamic Games and Applications | Issue 2/2018

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

This paper introduces the notion of a potential differential game (PDG), which roughly put is a noncooperative differential game to which we can associate an optimal control problem (OCP) whose solutions are Nash equilibria for the original game. If this is the case, there are two immediate consequences. Firstly, finding Nash equilibria for the game is greatly simplified, because it is a lot easier to deal with an OCP than with the original game itself. Secondly, the Nash equilibria obtained from the associated OCP are automatically “pure” (or deterministic) rather than “mixed” (or randomized). We restrict ourselves to open-loop differential games. We propose two different approaches to identify a PDG and to construct a corresponding OCP. As an application, we consider a PDG with a certain turnpike property that is obtained from results for the associated OCP. We illustrate our results with a variety of examples.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
1.
go back to reference Amir R, Nannerup N (2006) Information structure and the tragedy of the commons in resource extraction. J Bioecon 8:147–165CrossRef Amir R, Nannerup N (2006) Information structure and the tragedy of the commons in resource extraction. J Bioecon 8:147–165CrossRef
2.
go back to reference Charalambous CD (2016) Decentralized optimality conditions of stochastic differential decision problems via Girsanov’s measure transformation. Math Control Signals Syst 28:19. doi:10.1007/s00498-016-0168-3 Charalambous CD (2016) Decentralized optimality conditions of stochastic differential decision problems via Girsanov’s measure transformation. Math Control Signals Syst 28:19. doi:​10.​1007/​s00498-016-0168-3
3.
go back to reference Clarke F (2013) Functional analysis, calculus of variations and optimal control. Springer, BerlinCrossRefMATH Clarke F (2013) Functional analysis, calculus of variations and optimal control. Springer, BerlinCrossRefMATH
4.
go back to reference Dockner E, Feischtinger G, Jørgensen S (1985) Tractable classes of nonzero-sum open-loop Nash differential games: theory and examples. J Optim Theory Appl 45:179–197MathSciNetCrossRefMATH Dockner E, Feischtinger G, Jørgensen S (1985) Tractable classes of nonzero-sum open-loop Nash differential games: theory and examples. J Optim Theory Appl 45:179–197MathSciNetCrossRefMATH
5.
go back to reference Dockner EJ, Jørgensen S, Long NV, Sorger G (2000) Differential games in economics and management science. Cambridge University Press, CambridgeCrossRefMATH Dockner EJ, Jørgensen S, Long NV, Sorger G (2000) Differential games in economics and management science. Cambridge University Press, CambridgeCrossRefMATH
6.
go back to reference Dragone D, Lambertini L, Leitmann G, Palestini A (2009) Hamiltonian potential functions for differential games. IFAC Proc 42:1–8CrossRefMATH Dragone D, Lambertini L, Leitmann G, Palestini A (2009) Hamiltonian potential functions for differential games. IFAC Proc 42:1–8CrossRefMATH
7.
go back to reference Dragone D, Lambertini L, Palestini A (2012) Static and dynamic best-response potential functions for the non-linear Cournot game. Optimization 61:1283–1293MathSciNetCrossRefMATH Dragone D, Lambertini L, Palestini A (2012) Static and dynamic best-response potential functions for the non-linear Cournot game. Optimization 61:1283–1293MathSciNetCrossRefMATH
8.
go back to reference Dragone D, Lambertini L, Leitmann G, Palestini A (2015) Hamiltonian potential functions for differential games. Automatica 62:134–138MathSciNetCrossRefMATH Dragone D, Lambertini L, Leitmann G, Palestini A (2015) Hamiltonian potential functions for differential games. Automatica 62:134–138MathSciNetCrossRefMATH
9.
go back to reference Fonseca-Morales A, Hernández-Lerma O. A note on differential games with Pareto-optimal Nash equilibria: deterministic and stochastic models. J Dyn Games (to appear) Fonseca-Morales A, Hernández-Lerma O. A note on differential games with Pareto-optimal Nash equilibria: deterministic and stochastic models. J Dyn Games (to appear)
10.
go back to reference Friedman A (2013) Differential games. Dover Publications, Inc., Mineola, New York Friedman A (2013) Differential games. Dover Publications, Inc., Mineola, New York
11.
go back to reference González-Sánchez D, Hernández-Lerma O (2013) Discrete-time stochastic control and dynamic potential games: the Euler-equation approach. Springer, BerlinCrossRefMATH González-Sánchez D, Hernández-Lerma O (2013) Discrete-time stochastic control and dynamic potential games: the Euler-equation approach. Springer, BerlinCrossRefMATH
12.
go back to reference González-Sánchez D, Hernández-Lerma O (2013) An inverse optimal problem in discrete-time stochastic control. J Differ Equ Appl 19:39–53MathSciNetCrossRefMATH González-Sánchez D, Hernández-Lerma O (2013) An inverse optimal problem in discrete-time stochastic control. J Differ Equ Appl 19:39–53MathSciNetCrossRefMATH
13.
go back to reference González-Sánchez D, Hernández-Lerma O (2014) Dynamic potential games: the discrete-time stochastic case. Dyn Games Appl 4:309–328MathSciNetCrossRefMATH González-Sánchez D, Hernández-Lerma O (2014) Dynamic potential games: the discrete-time stochastic case. Dyn Games Appl 4:309–328MathSciNetCrossRefMATH
14.
15.
go back to reference Gopalakrishnan R, Marden JR, Wierman A (2014) Potential games are necessary to ensure pure Nash equilibria in cost sharing games. Math Oper Res 39:1252–1296MathSciNetCrossRefMATH Gopalakrishnan R, Marden JR, Wierman A (2014) Potential games are necessary to ensure pure Nash equilibria in cost sharing games. Math Oper Res 39:1252–1296MathSciNetCrossRefMATH
16.
go back to reference Jørgensen S, Zaccour G (2012) Differential games in marketing, vol 15. Springer, Berlin Jørgensen S, Zaccour G (2012) Differential games in marketing, vol 15. Springer, Berlin
17.
go back to reference La QD, Chew YH, Soong BH (2016) Potential game theory: applications in radio resource allocation. Springer, BerlinMATH La QD, Chew YH, Soong BH (2016) Potential game theory: applications in radio resource allocation. Springer, BerlinMATH
19.
go back to reference Mangasarian OL (1969) Nonlinear programming. McGraw-Hill, New YorkMATH Mangasarian OL (1969) Nonlinear programming. McGraw-Hill, New YorkMATH
22.
go back to reference Potters JAM, Raghavan TES, Tijs SH (2009) Pure equilibrium strategies for stochastic games via potential functions. In: Advances in dynamic games and their applications. Birkhauser, Boston, pp 433–444 Potters JAM, Raghavan TES, Tijs SH (2009) Pure equilibrium strategies for stochastic games via potential functions. In: Advances in dynamic games and their applications. Birkhauser, Boston, pp 433–444
24.
25.
go back to reference Sundaram RK (1996) A first course in optimization theory. Cambridge University Press, CambridgeCrossRefMATH Sundaram RK (1996) A first course in optimization theory. Cambridge University Press, CambridgeCrossRefMATH
26.
go back to reference Tauchnitz N (2015) The Pontryagin maximum principle for nonlinear optimal control problems with infinite horizon. J Optim Theory Appl 167:27–48MathSciNetCrossRefMATH Tauchnitz N (2015) The Pontryagin maximum principle for nonlinear optimal control problems with infinite horizon. J Optim Theory Appl 167:27–48MathSciNetCrossRefMATH
27.
28.
go back to reference Yong J, Zhou XY (1999) Stochastic controls: Hamiltonian systems and HJB equations, vol 43. Springer, BerlinCrossRefMATH Yong J, Zhou XY (1999) Stochastic controls: Hamiltonian systems and HJB equations, vol 43. Springer, BerlinCrossRefMATH
29.
go back to reference Zazo S, Zazo J, Sánchez-Fernández M (2014) A control theoretic approach to solve a constrained uplink power dynamic game. In: 22nd European Signal processing conference on IEEE (EUSIPCO), pp 401–405 Zazo S, Zazo J, Sánchez-Fernández M (2014) A control theoretic approach to solve a constrained uplink power dynamic game. In: 22nd European Signal processing conference on IEEE (EUSIPCO), pp 401–405
30.
go back to reference Zazo S, Valcarcel S, Sánchez-Fernández M, Zazo J (2015) A new framework for solving dynamic scheduling games. In: IEEE international conference on acoustics, speech and signal processing (ICASSP), pp 2071–2075 Zazo S, Valcarcel S, Sánchez-Fernández M, Zazo J (2015) A new framework for solving dynamic scheduling games. In: IEEE international conference on acoustics, speech and signal processing (ICASSP), pp 2071–2075
Metadata
Title
Potential Differential Games
Authors
Alejandra Fonseca-Morales
Onésimo Hernández-Lerma
Publication date
03-04-2017
Publisher
Springer US
Published in
Dynamic Games and Applications / Issue 2/2018
Print ISSN: 2153-0785
Electronic ISSN: 2153-0793
DOI
https://doi.org/10.1007/s13235-017-0218-6

Other articles of this Issue 2/2018

Dynamic Games and Applications 2/2018 Go to the issue

Premium Partner