Linear-quadratic discrete-time dynamic potential games

Abstract

Discrete-time game-theoretic models of resource exploitation are treated as dynamic potential games. The players (countries or firms) exploit a common stock on the infinite time horizon. The main aim of the paper is to obtain a potential for the linear-quadratic games of this type. The class of games where a potential can be constructed as a quadratic form is identified. As an example, the dynamic game of bioresource management is considered and the potentials are constructed in the case of symmetric and asymmetric players.