Differential Game Theory and Its Applications in Dynamic Economic Systems

Differential game theory is a mathematical framework for analyzing strategic interactions among rational decision-makers in systems governed by differential equations. Unlike static game theory, differential games explicitly incorporate time, state dynamics, control variables, and the evolution of strategic behavior over continuous or discrete horizons. This makes the theory especially suitable for modeling dynamic economic systems such as resource extraction, oligopolistic competition, growth under strategic interaction, environmental regulation, taxation, monetary policy, and innovation races. The central objective of differential game theory is to determine equilibrium strategies—often open-loop, feedback, or Nash equilibria—that optimize each player’s objective function while accounting for the evolution of the system state.

کلیدواژه ها:

Differential games ، dynamic optimization ، Nash equilibrium ، economic dynamics ، optimal control