Showing 1 - 10 of 2,801
In this paper we put forward a simple game-theoretical model of pollution control, where each country is in control of … its own pollution, while the environmental effects of policies do not stop at country borders. In our noncooperative … differential game, countries as players minimize the present value of their own costs defined as a linear combination of pollution …
Persistent link: https://www.econbiz.de/10011852696
This paper studies Krugman's (1991) core-periphery model and extends it to include environmental pollution. We present … local environmental pollution, a third and more realistic type of equilibrium may occur in which most of the manufacturing …
Persistent link: https://www.econbiz.de/10011422118
The mainstream model of option pricing is based on an exogenously given process of price movements. The implication of this assumption is that price movements are not affected by actions of market participants. However, if we assume that there are indeed impacts on the price movements it no...
Persistent link: https://www.econbiz.de/10010301361
This paper analyzes the impact of pollution and abatement policy within a stochastic endogenous growth model. The …
Persistent link: https://www.econbiz.de/10010317622
This paper analyzes stochastic productive pollution within a model of endogenous growth. The extent to which the agents … perceive their individual influence on aggregate pollution is parameterized. Recursive preferences allow for the separation … stochastic pollution tax, which is uncorrelated with the technological uncertainty of pollution, is compared with a pure …
Persistent link: https://www.econbiz.de/10010262909
Suppose that the goals of a society can be summarized in a social choice rule, i.e., a mapping from relevant underlying parameters to final outcomes. Typically, the underlying parameters (e.g., individual preferences) are private information to the agents in society. The implementation problem...
Persistent link: https://www.econbiz.de/10010318948
Basel II changes risk management in banks strongly. Internal rating procedures would lead one to expect that banks are changing over to active risk control. But, if risk management is no longer a simple "game against nature", if all agents involved are active players then a shift from a...
Persistent link: https://www.econbiz.de/10010296819
Bergin and Lipman (1996) show that the refinement effect from the random mutations in the adaptive population dynamics in Kandori, Mailath and rob (1993) and Young (1993) is due to restrictions on how these mutation rates vary across population states. We here model mutation rates as...
Persistent link: https://www.econbiz.de/10010334682
Persistent link: https://www.econbiz.de/10010335145
equilibrium. Players are assumed to make strategy choices using a combination of imitation and innovation. We begin by looking at … an imitation dynamic and provide conditions under which play evolves to an imitation equilibrium; convergence is … conditional on the network of social interaction. We then illustrate, through example, how imitation and innovation can complement …
Persistent link: https://www.econbiz.de/10011324955