Abstract:
The paper considers linear-quadratic discrete-time dynamic games with nontransferable payoffs. Pareto-optimal solution is studied as optimality principle. The time consistency and irrational behavior proof condition of this solution are investigated. As an example, the government debt stabilization game is considered.
Keywords:linear-quadratic games, discrete-time games, games with nontransferable payoffs, Pareto-optimal solution, time consistency, PDP, irrational behavior proof condition.
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