[Grokking Differential Game Theory S04E03] Why Feedback Changes the Equilibrium

A fixed time schedule and a fixed state-dependent rule give an opponent different control problems. We derive the extra response term, compare the shadow-price equations, and reproduce the book's numerical example with two switching dates before verifying the resulting asymmetric feedback equilibrium. 00:00 The same formula can implement different rules 01:28 Why player one's shadow-price equation survives 03:00 A feedback substitution changes the rival's dynamics 04:28 The missing derivative is a rival response 06:00 Player two's shadow value now follows another equation 07:33 Compare backward solutions from the same endpoint 09:01 A numerical example has two switching dates 10:31 Read actions without making the state jump 12:05 Verify the asymmetric feedback arrangement This exposition video is based on Chapter 4, Section 4.1 of Differential Games in Economics and Management Science by Engelbert J. Dockner, Steffen Jørgensen, Ngo Van Long, and Gerhard Sorger.