Dynamically consistent cooperative solution in a differential game of transboundary industrial pollution

This paper considers cooperative differential games in which players enter the game at different times and have diverse horizons. Moreover, the types of future players are not known with certainty. Dynamically consistent cooperative solutions and analytically tractable payoff distribution mechanisms leading to the realization of these solutions are derived. This analysis widens the application of cooperative differential game theory to problems where the players ’ game horizons are asynchronous and the types of future players are uncertain. It represents the first attempt to seek subgame consistent solution for cooperative games with asynchronous players ’ horizons and uncertain types of future players