THEORY OF DYNAMIC GAMES AND ITS APPLICATIONS IN LARGE SCALE SYSTEMS DESIGN AND OPTIMIZATION.

In this paper we first provide a brief review of some of the recent results on dynamic games, in particular with regard to memory strategies, and then discuss potential applications of the techniques developed in this context to large scale systems design, optimization and coordination. Incorporation of memory strategies in the optimization of interconnected systems enables one to enforce satisfiability of more than one criterion and to treat coordination problems wherein the lower levels have different perceptions of the underlying model and goals. A number of such design criteria are introduced, and recipes are given to obtain coordinator policies with good sensitivity properties.