Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099533 | Journal of Economic Dynamics and Control | 2008 | 20 Pages |
Abstract
Dynamic problems of pollution and resource management with stock externalities often require a differential games framework of analysis. In addition they are represented realistically by non-linear transition equations. However, feedback Nash equilibrium (FBNE) solutions, which are the desired ones in this case, are difficult to obtain in problems with non-linear-quadratic structure. We develop a method to obtain numerically non-linear FBNE for a class of such problems, with a specific example for shallow lake pollution control. We compare FBNE solutions, by considering the entire equilibrium trajectories, with optimal management and open-loop solutions, and we show that the value of the best FBNE is in general worse than the open-loop and optimal management solutions.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
G. Kossioris, M. Plexousakis, A. Xepapadeas, A. de Zeeuw, K.-G. Mäler,