Next Article in Journal
The Feynman–Kac Representation and Dobrushin–Lanford–Ruelle States of a Quantum Bose-Gas
Next Article in Special Issue
Time-Dependent Theme Park Routing Problem by Partheno-Genetic Algorithm
Previous Article in Journal
On the Generalized Cross-Law of Importation in Fuzzy Logic
 
 
Article

Exploitation of a Productive Asset in the Presence of Strategic Behavior and Pollution Externalities

1
GERAD, HEC Montréal, 3000 Côte-Sainte-Catherine, Montreal, QC H3T 2A7, Canada
2
Chair in Game Theory and Management, 3000 Côte-Sainte-Catherine, Montreal, QC H3T 2A7, Canada
*
Author to whom correspondence should be addressed.
Mathematics 2020, 8(10), 1682; https://doi.org/10.3390/math8101682
Received: 28 August 2020 / Revised: 25 September 2020 / Accepted: 26 September 2020 / Published: 1 October 2020
(This article belongs to the Special Issue Mathematical Game Theory 2021)
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–Nash equilibrium with asymptotically stable steady state(s). The results show that the firm’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. View Full-Text
Keywords: productive asset; oligopoly; pollution externalities; dynamic games productive asset; oligopoly; pollution externalities; dynamic games
Show Figures

Figure 1

MDPI and ACS Style

Vardar, N.B.; Zaccour, G. Exploitation of a Productive Asset in the Presence of Strategic Behavior and Pollution Externalities. Mathematics 2020, 8, 1682. https://doi.org/10.3390/math8101682

AMA Style

Vardar NB, Zaccour G. Exploitation of a Productive Asset in the Presence of Strategic Behavior and Pollution Externalities. Mathematics. 2020; 8(10):1682. https://doi.org/10.3390/math8101682

Chicago/Turabian Style

Vardar, N. Baris, and Georges Zaccour. 2020. "Exploitation of a Productive Asset in the Presence of Strategic Behavior and Pollution Externalities" Mathematics 8, no. 10: 1682. https://doi.org/10.3390/math8101682

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop