Slow and steady wins the race: approximating Nash equilibria in nonlinear quadratic tracking games

Dmitri Blueschke, Viktoria Blüschke-Nikolaeva and Ivan Savin
Additional contact information
Viktoria Blüschke-Nikolaeva: Alpen-Adria Universität Klagenfurt, Austria

No 2015-011, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We propose a meta-heuristic approach for solving nonlinear dynamic tracking games. In contrast to more 'traditional' methods based on linear-quadratic (LQ) techniques, this derivative-free method is very flexible (e.g. to introduce inequality constraints). The meta-heuristic is applied to a three-player dynamic game and tested versus derivative-dependent method in approximating Nash solution in different game specifications. We demonstrate the superiority of the proposed approach in identifying Nash equilibria, where LQ methods are not applicable.

Keywords: Dynamic games; Nash equilibrium; Differential Evolution (search for similar items in EconPapers)
JEL-codes: C61 C63 C72 C73 E61 (search for similar items in EconPapers)
Date: 2015-07-10
New Economics Papers: this item is included in nep-gth, nep-hpe, nep-mac and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2015/wp_2015_011.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2015-011

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().