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GAMES AND INFORMATION, FOURTH EDITION

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Dynamic Games are mathematical models of the interaction between different agents who are controlling a dynamical system. Such situations occur in many instances like armed conflicts (e.g. duel between a bomber and a jet fighter), economic competition (e.g. investments in R&D for computer companies), parlor games (Chess, Bridge). These examples concern dynamical systems since the actions of the agents (also called players) influence the evolution over time of the state of a system (position and velocity of aircraft, capital of know-how for Hi-Tech firms, positions of remaining pieces on a chess board, etc). The difficulty in deciding what should be the behavior of these agents stems from the.

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