Subgame Consistent Economic Optimization: An Advanced Cooperative Dynamic Game Analysis by David W.K. Yeung
English | EPUB | 2012 | 403 Pages | ISBN : 0817682619 | 9.4 MB
The prevalence of imperfect structures, externalities, and imperfect information in existing market systems prevents the market from serving as an efficient mechanism for resource allocation. In the presence of such failures, optimization of economic activities provides an effective remedial measure. Cooperative optimization suggests the possibility of socially optimal and individually rational solutions to decision problems involving strategic action over time; however, to guarantee that cooperation will last throughout the agreement period, the stringent condition of subgame consistency is required.