CHAPTER 5 - Difference Games with Constant Control Sets

Abstract

This chapter discusses difference games with constant control sets. Among all games that generally describe conflict situations, it is convenient to consider a special class known as difference games. These games describe dynamic conflicts, that is, conflicts that develop from stage to stage. These stages are usually considered as moments of time at which players make decisions. Finite difference games are not ideal for describing conflict in economics. Infinite difference games, however, are very difficult to employ. A continuous difference games with constant control sets. These games are suitable for describing conflicts between two economies that have constant supply during the game.