Efficient Markov perfect Nash equilibria: theory and application to dynamic fishery games

In this paper, we present a method for the characterization of Markov perfect Nash equilibria being Pareto efficient in non-linear differential games. For that purpose, we use a new method for computing Nash equilibria with Markov strategies by means of a system of quasilinear partial differential equations. We apply the necessary and sufficient conditions derived to characterize efficient Markov perfect Nash equilibria to dynamic fishery games.