In this paper socially optimal and private exploitation of a common property aquifer are compared. Open-loop and feedback equilibria in nonlinear strategies have been computed to characterize the private solution. The use of these two equilibrium concepts aIlows us to distinguish between cost...

We experimentally study behavior in a common property renewable resource extraction game with multiple equilibria. In the experiment, pairs of subjects competitively extract and consume a renewable resource in continuous time. We find that play evolves over time into multiple steady states, with...

This study extends the time-variant closed-loop strategy of Fruchter and Kalish (1997) to the n-player advertising game. We demonstrate that solving an n-player game using 2 players results in overadvertising.

In this paper we claim that the disadvantage in the pollution control is not primarily the accumulated stock of pollutants, which is an accomplished fact, but the use of the available inputs in production in conjunction with the available equipment are the sources of pollutants accumulation. In...

This paper surveys three areas of applications of dynamic games: (i) transboundary pollution, (ii) exploitation of transboundary resources, and (iii) problems of the developing world: capital flights, foreign aid, war and peace. A refresher section introduces the basic ideas and solution...

It has been recognized that the optimal strategy of a government is generally time-inconsistent: optimality requires that the government take into account expectations effects in the formulation of its policy and to ignore these effects when applying the policy. In order to analyse the problem,...

This paper studies the identification of best response functions in binary games without making strong parametric assumptions about the payoffs. The best response function gives the utility maximizing response to a decision of the other players. This is analogous to the response function in the...

By applying the new theory of economic policy to the provision of public goods, new and interesting issues emerge. On the one hand, such well-known results as, e.g., the inefficiency of decentralized equilibria can be reinterpreted in the light of the new approach; on the other hand, new issues...

We propose an infinite-horizon quantity-setting differential game with learning spillovers and organizational forgetting to analyze the optimal management decisions affecting the evolution of the stock of know-how, and, in turn, the dynamics of productive efficiency. Specifically, we study the...