One of the in-house graphics programmers from Irrational went to Kotaku and explained the lighting and shadow techniques they used for BioShock Infinite. The article goes into both baked (static) and dynamic lighting/shadows. This article does not go into the specific formulas or anything of that nature, rather the general concept they used to tackle a lighting situation. Warning! The contents of the article are very technical. http://kotaku.com/the-science-behind-bioshock-infinites-beautiful-world-1537743502
