Hyperbolicity of Systems Describing Value Functions in Differential Games which Model Duopoly Problems
DOI:
https://doi.org/10.7494/dmms.2015.9.1.89Keywords:
duopoly models, semi-cooperative feedback strategies, Pareto optimality, hyperbolic partial differential equationsAbstract
Based on the Bressan and Shen approach (Bressan and Shen, 2004; Shen, 2009), we present an extension of the class of non-zero sum differential games for which value functions are described by a weakly hyperbolic Hamilton–Jacobi system. The considered value functions are determined by a Pareto optimality condition for instantaneous gain functions, for which we compare two methods of the unique choice Pareto optimal strategies. We present the procedure of applying this approach for duopoly.
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