A Game-Theoretic Framework for Studying Dynamics of Multi Decision-maker Systems

Abstract

System Dynamics’ (SD) main aim is to study dynamic behavior of systems based on causal relations. The other purpose of the science is to design policies, both in initial values and causal relation, to change system behavior as we desire. Especially we are interested in making system’s behavior a convergent one. Although now SD is mainly used in situations of single policy maker, there are major parts of situations in which there are multi policy makers playing role. Game Theory (GT) is an appropriate tool for studying such cases.GT is the theory of studying multi decision-maker conditions. In this paper we will introduce GT and explain how to apply it in SD. Also we will provide some examples of microeconomic systems and show how to use GT for studying and simulating dynamics of these example systems. We will also have a short discuss on how SD can help GT studies.

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