317004 Differential Games in Economics and Management Science (V) (SoSe 2009)

Course Hours: Tuesday, 10:15-11:55

Content:
Differential Games in Economic and Management is a course aimed at Doctoral and advanced Diploma students. The course is based on the Textbook by Dockner et al. (2000).

Participants of the course should each week study assigned chapters from the Textbook and typically prepare exercises. At the course meetings every Tuesday issues related to the assigned chapters as well as exercises will be discussed.
Grading will be based on participation during the course and a term paper to be written at the end of the course. In this paper some dynamic strategic interaction should be modelled using a differential game and some methods covered in the course should be used to analyze that differential game. Papers should be submitted by August 31, 2009.

Planned Schedule:
28.04.2009: Initial meeting and Introduction
05.05.2009: Crash Course Game Theory (Chap. 2), Dynamic Optimization (Chap 3)
12.05.2009: Dynamic Optimization (Chap. 3)
19.05.2009: Ex. 3.9.2, 3.9.3, 3.9.7
26.05.2009: Formulation of Differential Games, Solution Concepts, Time-Consistency (Chap. 4)
02.06.2009: Ex. 4.5.1, 4.5.3, 4.5.5, 4.5.6
09.06.2009: Stackelberg Games (Chap. 5), Ex. 5.5.2
16.06.2009: Games with special structure (Chap. 7), Ex. 7.5.2, 7.5.4, 7.5.5
23.06.2009: Stochastic Games (Chap. 8), Ex. 8.4.1, 8.4.6
30.06.2009: Capital Accumulation Games (Chap. 9)
07.07.2009: Ex. 9.7.1, 9.7.3, 9.7.4
14.07.2009: Dynamic R&D Competition (Chap. 10), Ex. 10.5.5

Teilnahmevoraussetzungen, notwendige Vorkenntnisse

Prior knowledge in Game Theory and Differential Equations is a plus but no prerequisite.

Literaturangaben

• E. Dockner, S. Jorgensen, N. V. Long, G. Sorger: Differential Games in Economics and Management Science, Cambridge University Press, Cambridge, 2000

Further Reading:

• Basar, T. and Olsder, G. (1995): Dynamic noncooperative game theory, Academic Press, New York
• Mehlmann, Alexander (1988): Applied differential games, Plenum Press, New York
• Petit, M.L. (1990): Control theory and dynamic games in economic policy analysis, Cmabridge Univ. Press, Cambridge.
• Grass, D., Caulkins, J.P., Feichtinger, G., Tragerl, G. and Behrens, D. (2008): Optimal Control of Nonlinear Processes, Springer, Berlin.