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

TL;DR

This paper introduces a game-theoretic framework integrated with system dynamics to analyze and simulate the behavior of multi-decision-maker systems, with applications in microeconomics.

Contribution

It presents a novel integration of game theory with system dynamics to study multi-policy maker systems and demonstrates its application through microeconomic examples.

Findings

Game theory effectively models multi-policy decision interactions.

The framework helps in designing policies for convergent system behavior.

Application examples illustrate the approach's utility in microeconomics.

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 systems 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.