Exploitation of a Productive Asset in the Presence of Strategic Behavior and Pollution Externalities
| Autor: | Baris Vardar, Georges Zaccour |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Pollution
State variable General Mathematics media_common.quotation_subject dynamic games Oligopoly Microeconomics Computer Science::Computational Engineering Finance and Science Stability theory 0502 economics and business Differential game Computer Science (miscellaneous) Economics oligopoly productive asset 050207 economics pollution externalities Engineering (miscellaneous) Stock (geology) 050205 econometrics media_common lcsh:Mathematics 05 social sciences lcsh:QA1-939 Nonlinear system Externality |
| Zdroj: | Mathematics, Vol 8, Iss 1682, p 1682 (2020) Mathematics Volume 8 Issue 10 |
| ISSN: | 2227-7390 |
| Popis: | We study the strategic behavior of firms competing in the exploitation of a common-access productive asset, in the presence of pollution externalities. We consider a differential game with two state variables (asset stock and pollution stock), and by using a piecewise-linear approximation of the nonlinear asset growth function, we provide a tractable characterization of the symmetric feedback&ndash Nash equilibrium with asymptotically stable steady state(s). The results show that the firm&rsquo s strategy takes three forms depending on the pair of state variables and that different options for the model parameters lead to contrasting outcomes in both the short- and long-run equilibria. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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