Graph Transformations and Game Theory: A Generative Mechanism for Network Formation

Many systems can be described in terms of networks with characteristic structural properties. To better understand the formation and the dynamics of complex networks one can develop generative models. We propose here a generative model (named dynamic spatial game) that combines graph transformations and game theory. The idea is that a complex network is obtained by a sequence of node-based transformations determined by the interactions of nodes present in the network. We model the node-based transformations by using graph grammars and the interactions between the nodes by using game theory. We illustrate dynamic spatial games on a couple of examples: the role of cooperation in tissue formation and tumor development and the emergence of patterns during the formation of ecological networks

Equilibrium Selection in Static and Dynamic Entry Games

We experimentally examine equilibrium refinements in static and dynamic binary choice games of complete information with strategic complementarities known as “entry†games. Our aim is to assess the predictive power of two different equilibrium selection principles. In static entry games, we test the theory of global games as an equilibrium selection device. This theory posits that players play games of complete information as if they were playing a related global game of incomplete information. In dynamic entry games, individuals decide not only whether to enter but also when to enter. Once entry occurs it is irreversible. The number of people who have already entered is part of the state description, and individuals can condition their decisions on that information. If the state variable does not indicate that entry is dominated, the efficient subgame perfect equilibrium prediction calls for all players to enter. Further, if there is a cost of delay, entry should occur immediately, thereby eliminating the coordination problem. This subgame perfect entry threshold in the dynamic game will generally differ from the global game threshold in static versions of the same entry game. Nevertheless, our experimental findings suggest that observed entry thresholds in both static and dynamic versions of the same entry game are surprisingly similar. The mean entry threshold in the static game lies below the global game equilibrium threshold while the mean entry threshold in the dynamic game lies above the efficient subgame perfect equilibrium threshold. An important implication of this finding is that if one were to observe only the value of the state variable and the number of people who enter by the end of the game one could not determine whether the static or the dynamic game had been played.

Convergence and international policy coordination in the EU: A dynamic games approach

Maastricht Treaty;Dynamic Games;EU;Game Theory;International Policy

On the Core of Dynamic Cooperative Games

We consider dynamic cooperative games, where the worth of coalitions varies over time according to the history of allocations. When defining the core of a dynamic game, we allow the possibility for coalitions to deviate at any time and thereby to give rise to a new environment. A coalition that considers a deviation needs to take the consequences into account because from the deviation point on, the game is no longer played with the original set of players. The deviating coalition becomes the new grand coalition which, in turn, induces a new dynamic game. The stage games of the new dynamical game depend on all previous allocation including those that have materialized from the deviating time on. We define three types of core solutions: fair core, stable core and credible core. We characterize the first two in case where the instantaneous game depends on the last allocation (rather than on the whole history of allocations) and the third in the general case. The analysis and the results resembles to a great extent the theory of non-cooperative dynamic games.Comment: 25 page

Regionalism Cycle in Asia (-Pacific): A Game Theory Approach to the Rise and Fall of Asian Regional Institutions

Despite a commonplace view that Asian regionalism lacks institutions, Asia, in fact, is full of regional institutions and frameworks in various forms. The rise and fall of regional institutions in Asia is an extremely dynamic process. Using a game theory approach, this paper hypothesizes that the dynamic nature of Asian regionalism can be explained by a "regionalism cycle." The institutional outcome of regionalism in Asia has been cyclical because the game played by Japan and the United States does not have a stable equilibrium. This paper tests the hypothesized regionalism cycle using actual cases of regional institutions in the field of financial cooperation and regional summit meetings.regionalism; Regionalism cycle; Asian Monetary Fund (AMF); East Asia Summit (EAS); Game Theory

Disturbance Decoupling in Dynamic Games

A theory for disturbance decoupling problems has been well developed in the area of geometric control theory. The aim of the present study is to introduce disturbance decoupling problems in a dynamic game context. For this purpose, techniques from geometric control theory are applied. Necessary and sufficient conditions are derived for the solvability of the disturbance decoupling problems introduced here. Consequently, for a given game, the players can easily check if these problems are solvable or not.Disturbance decoupling;differential games;robust controlled invariance