A1890
Title: An evolutionary approach to obtain a Nash equilibrium in a coalition game
Authors: Dmitri Blueschke - University of Klagenfurt (Austria)
Viktoria Blueschke-Nikolaeva - University of Klagenfurt (Austria) [presenting]
Reinhard Neck - Alpen-Adria Universitaet Klagenfurt (Austria)
Abstract: The aim is to analyze dynamic interactions in a monetary union with three fiscal players (governments of countries) and a common central bank in the presence of exogenous shocks. A meta-heuristic solution technique based on the Differential Evolution method is employed. The proposed meta-heuristic approach for obtaining Nash equilibrium of a nonlinear dynamic game is designed with two linked procedures: a heuristic approach (the Differential Evolution algorithm) for finding individual optimal strategies and an approach for finding an approximate game equilibrium. The main advantage of using a heuristic evolutionary-based framework consists in its flexibility. Using the new methodology, Nash equilibrium can be obtained for a dynamic coalition game with various restrictions such as non-symmetric objective functions and different coalition designs.
