Resource extraction vs. recycling - a differential game approach. (English) Zbl 0684.90024
Summary: We consider the problem of recycling of an exhaustive resource. A given amount of the resource is assumed to be “essential” for production of a consumption good in the sense that the resource cannot be substituted by another input or another production technology.
Two-player nonzero-sum differential games are discussed, where one player can extract the resource and the other one can regain the resource by recycling. These differential games are discussed due to different solution concepts: (1) Nash equilibria, (2) Stackelberg equilibria. In case (2) leadership is discussed subsequently for both players.
Two-player nonzero-sum differential games are discussed, where one player can extract the resource and the other one can regain the resource by recycling. These differential games are discussed due to different solution concepts: (1) Nash equilibria, (2) Stackelberg equilibria. In case (2) leadership is discussed subsequently for both players.
MSC:
| 91B76 | Environmental economics (natural resource models, harvesting, pollution, etc.) |
| 91B62 | Economic growth models |
| 91A23 | Differential games (aspects of game theory) |
| 91A40 | Other game-theoretic models |
| 93A13 | Hierarchical systems |
