This textbook presents a study of subgame consistent economic optimization, developing game-theoretic optimization techniques to establish the foundation for an effective policy menu to tackle the suboptimal behavior that the conventional market mechanism fails to resolve.
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"The text is truly a world-leading treatise in the field of dynamically consistent economic optimization and a Russian classic in mathematics and economics. It is a timely publication to tackle the increasingly crucial issues of consistency and dynamic stability in collaborative activities in the economic arena. The elegant mathematics developed by the authors and their [useful] applications in economics are prevalent in the analysis. The text expanded L. V. Kantorovich's award-winning work in economic optimization significantly in the new directions of game-theoretic interaction, dynamic evolution, stochasticity, and subgame consistency." -- Vladimir Mazalov, Director of Karelian Institute of Applied Mathematical Research, Russian Academy of Sciences