Feedback and Open-Loop Nash Equilibria for LQ Infinite-Horizon Discrete-Time Dynamic Games

Fuente: arXiv
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Hauptverfasser: Monti, A., Nortmann, B., Mylvaganam, T., Sassano, M.
Format: Preprint
Veröffentlicht: 2023
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author Monti, A.
Nortmann, B.
Mylvaganam, T.
Sassano, M.
author_facet Monti, A.
Nortmann, B.
Mylvaganam, T.
Sassano, M.
contents We consider dynamic games defined over an infinite horizon, characterized by linear, discrete-time dynamics and quadratic cost functionals. Considering such linear-quadratic (LQ) dynamic games, we focus on their solutions in terms Nash equilibrium strategies. Both Feedback (F-NE) and Open-Loop (OL-NE) Nash equilibrium solutions are considered. The contributions of the paper are threefold. First, our detailed study reveals some interesting structural insights in relation to F-NE solutions. Second, as a stepping stone towards our consideration of OL-NE strategies, we consider a specific infinite-horizon discrete-time (single-player) optimal control problem, wherein the dynamics are influenced by a known exogenous input and draw connections between its solution obtained via Dynamic Programming and Pontryagin's Minimum Principle. Finally, we exploit the latter result to provide a characterization of OL-NE strategies of the class of infinite-horizon dynamic games. The results and key observations made throughout the paper are illustrated via a numerical example.
format Preprint
id arxiv_https___arxiv_org_abs_2307_14898
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Feedback and Open-Loop Nash Equilibria for LQ Infinite-Horizon Discrete-Time Dynamic Games
Monti, A.
Nortmann, B.
Mylvaganam, T.
Sassano, M.
Optimization and Control
Systems and Control
We consider dynamic games defined over an infinite horizon, characterized by linear, discrete-time dynamics and quadratic cost functionals. Considering such linear-quadratic (LQ) dynamic games, we focus on their solutions in terms Nash equilibrium strategies. Both Feedback (F-NE) and Open-Loop (OL-NE) Nash equilibrium solutions are considered. The contributions of the paper are threefold. First, our detailed study reveals some interesting structural insights in relation to F-NE solutions. Second, as a stepping stone towards our consideration of OL-NE strategies, we consider a specific infinite-horizon discrete-time (single-player) optimal control problem, wherein the dynamics are influenced by a known exogenous input and draw connections between its solution obtained via Dynamic Programming and Pontryagin's Minimum Principle. Finally, we exploit the latter result to provide a characterization of OL-NE strategies of the class of infinite-horizon dynamic games. The results and key observations made throughout the paper are illustrated via a numerical example.
title Feedback and Open-Loop Nash Equilibria for LQ Infinite-Horizon Discrete-Time Dynamic Games
topic Optimization and Control
Systems and Control
url https://arxiv.org/abs/2307.14898