Abstract
In this paper, we present a method for computing Nash equilibria in feedback strategies. This method gives necessary and sufficient conditions to characterize subgame perfect equilibria by means of a system of quasilinear partial differential equations. This characterization allows one to know explicitly the solution of the game in some cases. In other cases, this approach makes a qualitative study easier. We apply this method to nonrenewable resource games.
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Rincón-Zapatero, J.P., Martínez, J. & Martín-Herrán, G. New Method to Characterize Subgame Perfect Nash Equilibria in Differential Games. Journal of Optimization Theory and Applications 96, 377–395 (1998). https://doi.org/10.1023/A:1022674215872
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DOI: https://doi.org/10.1023/A:1022674215872