Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
481715 | European Journal of Operational Research | 2008 | 13 Pages |
Abstract
We consider two overlapping generations that want to coordinate their strategies of working, consuming and controlling pollution. Since the cooperative solution is not an equilibrium, and hence is not a self-enforcing contract, a mechanism is required to sustain it. We show how incentive strategies, and the resulting incentive equilibrium, could provide such a mechanism. We also derive the conditions that ensure the credibility of these strategies.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Michèle Breton, Abderrahmane Sokri, Georges Zaccour,