A multigenerational dynamic game of resource extraction

A multigenerational dynamic game of resource extraction is considered. Each generation consists of m short-lived players who derive utilities from their own consumption and that of following generations. Assuming the Cobb–Douglas production, a Markov subgame perfect equilibrium is constructed and the equilibrium path is analyzed. The model can also be described in terms of the standard dynamic game of resource extraction with m hyperbolic players whose preferences change over time.