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From optimal control to non-cooperative differential games: a homotopy approach

Bressan A.

Control and Cybernetics

2009

Vol. 38, no 4A

1081-1106

We propose a new approach to the study of Nash equilibrium solutions to non-cooperative differential games. The original problem is embedded in a one-parameter family of differential games, where the parameter 0 ∈ [0,1] accounts for the strength of the second player. When 0 = 0, the second player adopts a myopic strategy and the game reduces to an optimal control problem for the first player. As 0 becomes strictly positive, Nash equilibrium solutions can be obtained by studying a bifurcation problem for the corresponding system of Hamilton-Jacobi equations.