A comprehensive, self-contained survey of the theory and applications of differential games, one of the most commonly used tools for modelling and analysing economics and management problems which are characterised by both multiperiod and strategic decision making. Although no prior knowledge of game theory is required, a basic knowledge of linear algebra, ordinary differential equations, mathematical programming and probability theory is necessary. Part One presents the theory of differential games, starting with the basic concepts of game theory and going on to cover control theoretic models, Markovian equilibria with simultaneous play, differential games with hierarchical play, trigger strategy equilibria, differential games with special structures, and stochastic differential games. Part Two offers applications to capital accumulation games, industrial organization and oligopoly games, marketing, resources and environmental economics.

Graduate textbook presenting the theory and applications of differential games, assuming no prior knowledge of game theory.

1 Introduction Part Ⅰ Theory 2 Basic concepts of game theory 3 Control theoretic methods 4 Markovian equilibria with simultaneous play 5 Differential games with hierarchical play 6 Trigger strategy equilibria 7 differential games with special structures 8 Stochastic differential games Part Ⅱ Applications 9 Capital Accumulation games 10 Industrial organization and oligopoly games 11 Differential games in marketing 12 Differential games in Resources and environmental economics Answers and hints for exercises Bibliography Index