Geodesic
Cooperative Game-theoretic Mechanism Design For Optimal Resource Use
Contributions to game theory and management, Tome 2 (2009), pp. 483-513.

Voir la notice de l'article provenant de la source Math-Net.Ru

Economic analysis no longer treats the economic system as given since the appearance of Leonid Hurwicz's pioneering work on mechanism design. The failure of the market to provide an effective mechanism for optimal resource use will arise if there exist imperfect market structure, externalities, imperfect information or public goods. These phenomena are prevalent in the current global economy. As a result inefficient outcomes continue to emerge under the conventional market system. Cooperative game theory suggests the possibility of socially optimal and group efficient solutions to decision problems involving strategic actions. This lecture focuses on cooperative game-theoretic design of mechanisms for optimal resource use. Crucial features that are essential for a successful mechanism — individual rationality, group optimality, dynamic consistency, distribution procedures, budget balance, financing, incentives to cooperate and practicable institutional arrangements — are considered. Finally, cooperative game-theoretic mechanism design is used to establish the foundation for an effective policy menu to tackle sub-optimal resource use problems which the conventional market mechanism fails to resolve.
Keywords: Cooperative differential games, mechanism design, optimal resource use. 
@article{CGTM_2009_2_a36,
     author = {David W. K. Yeung},
     title = {Cooperative {Game-theoretic} {Mechanism} {Design} {For} {Optimal} {Resource} {Use}},
     journal = {Contributions to game theory and management},
     pages = {483--513},
     publisher = {mathdoc},
     volume = {2},
     year = {2009},
     language = {en},
     url = {http://geodesic.mathdoc.fr/item/CGTM_2009_2_a36/}
}
TY  - JOUR
AU  - David W. K. Yeung
TI  - Cooperative Game-theoretic Mechanism Design For Optimal Resource Use
JO  - Contributions to game theory and management
PY  - 2009
SP  - 483
EP  - 513
VL  - 2
PB  - mathdoc
UR  - http://geodesic.mathdoc.fr/item/CGTM_2009_2_a36/
LA  - en
ID  - CGTM_2009_2_a36
ER  - 
%0 Journal Article
%A David W. K. Yeung
%T Cooperative Game-theoretic Mechanism Design For Optimal Resource Use
%J Contributions to game theory and management
%D 2009
%P 483-513
%V 2
%I mathdoc
%U http://geodesic.mathdoc.fr/item/CGTM_2009_2_a36/
%G en
%F CGTM_2009_2_a36
David W. K. Yeung. Cooperative Game-theoretic Mechanism Design For Optimal Resource Use. Contributions to game theory and management, Tome 2 (2009), pp. 483-513. http://geodesic.mathdoc.fr/item/CGTM_2009_2_a36/

[1] Basar T., Olsder G. J., Dynamic Noncooperative Game Theory, 2nd Edition, Academic Press, London, 1995 | MR | Zbl

[2] Bellman R., Dynamic Programming, Princeton University Press, Princeton, NJ, 1957 | MR | Zbl

[3] Blaquiere A., Juricek L., Wiese K. E., “Geometry of Pareto Equilibria and a Maximum Principle in $N$-Person Differential Games”, Journal of Mathematical Analysis and Applications, 38:1 (1972), 223–243 | DOI | MR | Zbl

[4] Dantzig G. B., Wolfe P., “The Decom-Position Algorithm for Linear Programs”, Econometrica, 29 (1961), 767–778 | DOI | MR | Zbl

[5] Dockner E. J., Jørgensen S., “Cooperative and Non-Cooperative Differential Game Solutions to an Investment and Pricing Problem”, Journal of the Operational Research Society, 35 (1984), 731–739 | Zbl

[6] Dockner E. J., Long N. V., “International Pollution Control: Cooperative Versus Noncooperative Strategies”, Journal of Environmental Economics and Management, 24 (1993), 13–29 | DOI

[7] Gale D., Kuhn H. W., Tucker A. W., “Linear Programming and The Theory of Games”, Activity Analysis of Production and Allocation, eds. Koopmans T. C. et al., Wiley, New York, 1951, 317–329 | MR

[8] Gao L., Jakubowski A., Klompstra M. B., Olsder G. J., Time-Dependent Cooperation in Games, Springer-Verlag, Berlin, 1989 | MR

[9] Hämäläinen R. P., Haurie A., Kaitala V., “Equilibia and Threats in a Fishery Management Game”, Optimal Control Applications and Methods, 6 (1986), 315–333 | DOI | MR

[10] Haurie A., “A Note on Nonzero-sum Differential Games with Bargaining Solutions”, Journal of Optimization Theory and Applications, 18 (1976), 31–39 | DOI | MR | Zbl

[11] Haurie A., Piecewise Deterministic and Piecewise Diffusion Differential Games with Modal Uncertainties, Springer-Verlag, Berlin, 1991 | MR

[12] Haurie A., Krawczyk J. B., Roche M., “Monitoring Cooperative Equilibria in a Stochastic Differential Game”, Journal of Optimization Theory and Applications, 81 (1994), 73–95 | DOI | MR | Zbl

[13] Haurie A., Pohjola M., “Efficient Equilibria in a Differential Game of Capitalism”, Journal of Economic Dynamics and Control, 11 (1987), 65–78 | DOI | MR | Zbl

[14] Haurie A., Zaccour G., “A Differential Game Model of Power Exchange Between Interconnected Utilizes”, Proceedings of The 25th IEEE Conference on Decision and Control (Athens, Greece, 1986)

[15] Haurie A., Zaccour G., A Game Programming Approach to Efficient Management of Interconnected Power Networks, Springer-Verlag, Berlin, 1991

[16] Hurwicz L., “The Design of Mechanisms for Resource Allocation”, American Economic Review, Papers and Proceedings, 63 (1973), 1–30 | MR

[17] Isaacs R., Differential Games, Wiley, New York, 1965 | MR | Zbl

[18] Jørgensen S., Zaccour G., “Time Consistent Side Payments in a Dynamic Game of Downstream Pollution”, Journal of Economic Dynamics and Control, 25 (2001), 1973–1987 | DOI | MR

[19] Kaitala V., Mäler K. G., Tulkens H., “The Acid Rain Game as A Resource Allocation Process With An Application to The International Cooperation among Finland, Russia and Estonia, Scandinavian”, Journal of Economics, 97 (1995), 325–343 | Zbl

[20] Kaitala V., Pohjola M., “Optimal Recovery of A Shared Resource Stock: A Differential Game With Efficient Memory Equilibria”, Natural Resource Modeling, 3 (1988), 91–118 | MR

[21] Kaitala V., Pohjola M., “Sustainable International Agreements on Greenhouse Warming: A Game Theory Study”, Annals of The International Society of Dynamic Games, 2 (1995), 67–87 | MR | Zbl

[22] Kaitala V., Zaccour G., “Economic Development and Agreeable Redistribution in Capitalism: Efficient Game Equilibria in A Two-Class Neoclassical Growth Model”, International Economic Review, 31:2 (1990), 421–438 | DOI | MR | Zbl

[23] Kantorovich L. V., “Mathematical Methods of Organising and Planning Production”, Management Science, 6 (1960), 366–422 | DOI | MR | Zbl

[24] Koopmans T. C., “Analysis of Production as an Efficient Combination of Activities”, Activity Analysis of Production and Allocation, Cowles Commission Monograph, 13, ed. Koopmans T. C., New York, 1951, 33–97 | MR

[25] Koopmans T. C., Three Essays on The State of Economic Science, McGraw-Hill, New York, 1957

[26] Leitmann G., Cooperative and Non-Cooperative Many Player Differential Games, Springer-Verlag, New York, 1974 | MR | Zbl

[27] Leitmann G., Cooperative and Non-Cooperative Differential Games, D. Reide, Amsterdam, 1975 | MR

[28] Leitmann G., Rocklin G., Vincent T. L., “A Note on Control Space Properties of Cooperative Games”, Journal of Optimization Theory and Applications, 9 (1972), 379–390 | DOI | MR | Zbl

[29] Leitmann G., Schmitendorf W., “Sufficiency Conditions for Pareto-Optimal Control”, Journal of Dynamical Systems, Measurement, and Control, 95 (1963), 356–361 | DOI | MR

[30] Leitmann G., Schmitendorf W., “A Simple Derivation of Necessary Conditions for Pareto Optimality”, IEEE Transactions on Automatic Control, 18 (1974), 601–602 | MR

[31] Leitmann G., Stalford H., “A Sufficiency Theorem for Optimal Control”, Journal of Optimization Theory and Applications, 8 (1971), 169–174 | DOI | MR | Zbl

[32] Lukes D. L., “A Global Theory for Linear Quadratic Differential Games”, Journal of Mathematical Analysis and Applications, 33 (1971), 96–123 | DOI | MR | Zbl

[33] Mäler K. G., Zeeuw A. D., “The Acid Rain Differential Game”, Environmental and Resource Economics, 12 (1998), 167–184 | DOI

[34] von Neumann J., Morgenstern O., Theory of Games and Economic Behavior, John Wiley and Sons, New York, 1944

[35] Pareto V., Manuel D'économique Politique, Girard Et Briere, Paris, 1909

[36] Petrosyan L. A., “Stability of Solutions of Nonzero Sum Differential Games with Many Participants”, Viestnik (Transactions) of Leningrad University, 1977, no. 19, 46–52

[37] Petrosyan L. A., “The Time-Consistency of The Optimality Principles in Non-Zero Sum Differential Games”, Lecture Notes in Control and Information Sciences, 157, eds. P. P. Hamalainen, H. K. Ehtamo, Springer-Verlag, Berlin, 1991, 299–311 | DOI | MR

[38] Petrosyan L. A., “Strongly Time-Consistent Differential Optimality Principles”, Vestnik Saint Petersburg University Mathematics, 1993, no. 26, 40–46 | MR | Zbl

[39] Petrosyan L. A., “The Time Consistency in Differential Games with a Discount Factor”, Game Theory Applications, v. 1, 1993 | MR

[40] Petrosyan L. A., “The Regularization of $NB$-Scheme in Differential Games”, Journal of Economic Dynamics and Control, 5 (1995), 31 | MR

[41] Petrosyan L. A., “Agreeable Solutions in Differential Games”, International Journal of Mathematics, Game Theory and Algebra, 7 (1997), 165–177 | MR

[42] Petrosyan L. A., “Bargaining in Dynamic Games”, ICM Millennium Lectures on Games, eds. L. A. Petrosyan, D. W. K. Yeung, Springer-Verlag, Berlin, 2003, 139–143 | DOI | MR | Zbl

[43] Petrosyan L. A., Danilov N. N., “Stability of Solutions in Non-Zero Sum Differential Games with Transferable Payoffs”, Viestnik of Leningrad University, 1979, no. 1, 52–59 | MR | Zbl

[44] Petrosyan L. A., Danilov N. N., Cooperative Differential Games and Their Applications, Tomsk. Gos. University, Tomsk, 1985 | MR | Zbl

[45] Petrosyan L. A., Zenkevich N. A., Game Theory, World Scientific Publishing Co. Pte. Ltd., Republic of Singapore, 1996 | MR | Zbl

[46] Robinson J., “An Iterative Method of Solving a Game”, The Annals of Mathematics, Second Series, 54 (1951), 296–301 | DOI | MR | Zbl

[47] Rubio S. J., Casino B., “A Note on Cooperative Versus Non-Cooperative Strategies in International Pollution Control”, Resource and Energy Economics, 24 (2002), 251–261 | DOI

[48] Shapley L. S., “Simple Games: Application to Organization Theory”, The Second World Congress of The Econometric Society (Cambridge, England, 1970), 1970

[49] Shapley L. S., Shubik M., “Ownership and The Production Function”, Quart Journal of Economics, 81 (1967), 88–111 | DOI

[50] Stalford H., “Criteria for Pareto-Optimality in Cooperative Differential Games”, Journal of Optimization Theory and Applications, 9 (1972), 391–398 | DOI | MR | Zbl

[51] Tahvonen O., “Carbon Dioxide Abatement as a Differential Game”, European Journal of Political Economy, 10 (1994), 685–705 | DOI

[52] Tolwinski B., Haurie A., Leitmann G., “Cooperative Equilibria in Differential Games”, Journal of Mathematical Analysis and Applications, 119 (1986), 182–202 | DOI | MR | Zbl

[53] Vincent T. L., Leitmann G., “Control Space Properties of Cooperative Games”, Journal of Optimization Theory and Applications, 6 (1970), 91–113 | DOI | MR | Zbl

[54] Yeung D. W. K., “Nontransferable Individual Payoffs in Cooperative Stochastic Differential Games”, International Game Theory Review, 6 (2004), 281–289 | DOI | MR | Zbl

[55] Yeung D. W. K., “Solution Mechanisms for Cooperative Stochastic Differential Games”, International Game Theory Review, 8 (2006), 309–326 | DOI | MR | Zbl

[56] Yeung D. W. K., Petrosyan L. A., Proportional Time-Consistent Solution in Differential Games, St. Petersburg State University, 2001 | Zbl

[57] Yeung D. W. K., Petrosyan L. A., “Subgame Consistent Cooperative Solutions in Stochastic Differential Games”, Journal of Optimization Theory and Applications, 120 (2004), 651–666 | DOI | MR | Zbl

[58] Yeung D. W. K., Petrosyan L. A., Cooperative Stochastic Differential Games, Springer, New York, 2006 | MR

[59] Yeung D. W. K., Petrosyan L. A., “Dynamically Stable Corporate Joint Ventures”, Automatica, 42 (2006), 365–370 | DOI | MR | Zbl