Article ID Journal Published Year Pages File Type
5099609 Journal of Economic Dynamics and Control 2007 18 Pages PDF
Abstract
In a seminal paper, Dockner and van Long [1993. International pollution control: cooperative versus non-cooperative strategies. Journal of Environmental Economics and Management 25, 13-29] argue that nonlinear strategies allow to protect the commons compared with the linear (and singular) strategy. This paper shows that the existence of multiple equilibria depends on preference characteristics and that multiple equilibria need not foster conservation. In particular, if the (absolute) elasticity of marginal utility is decreasing, then multiple equilibria aggravate the tragedy of the commons compared with the singular (or saddlepoint) strategy.
Related Topics
Physical Sciences and Engineering Mathematics Control and Optimization
Authors
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