Multi-player interaction is analyzed in the framework of a time-discrete dynamic game. In the VCX model, i = 1, …, n players act upon k = 1, …, m system variables xk by allocating their power resources (costs) Ci and evaluate the outcomes with value functions Vi compared to target values (goals) Vi*. The players control the dynamics by adapting power resources and action priorities towards their goals according to reaction functions and adjustment strategies. Nash-Equilibria of the corresponding time-discrete dynamic system can be stabilized by cooperative adaptation of the action priorities, leading to Pareto optima on the allocation simplex. An application examines the multi-product oligopoly of firms within the model framework.
