web stats
 
   
 
Selected Research Project
 
 
Project Title Subgame-Consistent Solutions for Asynchronous- Horizon Cooperative Stochastic Differential Games
 
Principal Investigator Dr Cheng Hui Fai, Kell
 
Area of Research Project
Public Policy Studies
 
Project Period
From 9/2007 To 8/2010
Objectives
  • To establish a new paradigm in game theory, namely, asynchronous-horizon cooperative stochastic differential games;
  • To develop the concept of subgame consistency in an overlapping generation framework;
  • To develop a theorem on equilibrating transitory compensations across generations for a subgame-consistent cooperative solution, which will be a signal extension of the Tenet of Equilibrating Transitory Compensation developed by Yeung and Petrosyan (2004 and 2006a);
  • To develop an application in practical across-generation cooperation in natural resource conservation. Policy recommendations will also be presented;
  • To present an analysis on subgame-consistent across-generation cooperation when the payoffs of participants are not transferable. New game theoretic reasoning and novel mathematical theorem will also be developed; and
  • To present an analysis of the case when an infinite number of overlapping generations of players is considered. New game theoretic reasoning and novel mathematical theorem will also be developed.
Methods Used
  • Dynamic Programming
  • Optimal Control
  • Stochastic Control
  • Dynamic Games/Stochastic Dynamic Games
  • Computer Simulation
Summary of Findings
  • Refinements on the basic concept of subgame consistency in an overlapping generation framework and in asynchronous-horizon games;
  • A complete theorem on equilibrating transitory compensations across generations;
  • An across-generation cooperation in natural resource conservation;
  • Policy recommendations on intergeneration resource extraction; and
  • An analysis on subgame-consistent across-generation cooperation when the payoffs of participants are not transferable.
Impacts

The project contributes to the development of Stochastic Game Theory, particularly in the area of asynchronous-horizon cooperative stochastic differential games. New game theoretic theorems are developed to analyse subgame-consistent across-generation cooperation when the payoffs of participants are not transferable, and to evaluate cases with an infinite number of overlapping generations of players.
Selected Publications Related to the Study
  1. An Explicit Density Function for a Generalized StochaslicFood·chain of the Lotka·Volterra·Yeung Type. Stochastic Analysis andApplications. (2009).
  2. Dynamic Games and Their Applications in Management. St Petersburg University Publishers. (2009)
  3. A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution. Automatica. (2008)
  4. Special Issue on Frontiers in Game Theory: In Honour of John F Nash. International Game Theory Review. (2008)
  5. Dynamically Consistent Solution for a Pollution Management Game in Collaborative Abatement with Uncertain Future Payoffs. In D. W. K.Yeung and L. A. Petrosyan (Eds.), International Game Theory Review. (2008).
  6. Managing Catastrophe-bound Industrial Pollution with Game-theoretic Algorithm: The St Petersburg Initiative. Contributions to Game Theoryand Management. (2008).
  7. A Recursive Sequence for the Number of Positioned Partitions. International Journal of Algebra. (2008).
  8. Recursive Sequences Identifying the Number of Embedded Coalitions. International Game Theory Review. (2008).
  9. Integer Sequence A 137341 "A Recursive Sequence for the Number of Positioned Partitions" The On-line Encyclopedia of IntegerSequences. (2008).
  10. The Detailization of The Irrational BehaviourProofness Condition. Third International Conference on Game Theory and Management. (2009).
Biography of Principal Investigator

Dr. Cheng is currently a member of the Department of Mathematics and Information Technology of the Hong Kong Institute of Education. His research interests are mostly focused on computational topics, ranging from number theoretic areas to stochastic simulations.
Funding Source
General Research Fund