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the parameters that occur in the objective of both players seem to carry the most uncertainty for both the outcome of the …
Persistent link: https://www.econbiz.de/10012927761
derives max-min, max-max and min-max regret policies to deal with this particular form of climate (model) uncertainty and with …
Persistent link: https://www.econbiz.de/10011718250
uncertainty about the timber production. Two types of hedging strategies with harvesting decisions are studied: a financial …
Persistent link: https://www.econbiz.de/10014209855
This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It considers a dynamic game where commitment is limited, and characterizes the level of cooperation as measured by the reciprocal of the discount factor above which perfect risk...
Persistent link: https://www.econbiz.de/10003770693
Risk of stock collapse is a genuine motivation for cooperative fisheries management. We analyse the effect of an endogenously determined risk of stock collapse on the incentives to cooperate in a Great Fish War model. We establish that equilibrium harvest strategies are non-linear in stock and...
Persistent link: https://www.econbiz.de/10011287058
We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk in the neighborhood of a risk-free world is...
Persistent link: https://www.econbiz.de/10013081942
We introduce learning in a dynamic game of international pollution, with ecological uncertainty. We characterize and … ecological uncertainty but they gain information (learn) about it. We then compare our learning model with the benchmark model of … full information, where players know the distribution of ecological uncertainty. We find that uncertainty due to …
Persistent link: https://www.econbiz.de/10013050176
We present a new approach for studying equilibrium dynamics in a class of stochastic games with a continuum of players with private types and strategic complementarities. We introduce a suitable equilibrium concept, called Markov Stationary Distributional Equilibrium (MSDE), prove its existence,...
Persistent link: https://www.econbiz.de/10012829253
hydroelectricity producers are risk averse and face demand uncertainty. In each type of market structure we analytically determine the … or storage depending on the relative abundance of water between different regions to smooth the effect of uncertainty on …
Persistent link: https://www.econbiz.de/10014144936
is comparable to numeric models used in policy advising. Uncertainty surrounding climate change remains large. The closed …-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …, distributional moments, and the climatic shadow values. Welfare gains from reducing uncertainty about temperature feedbacks are much …
Persistent link: https://www.econbiz.de/10011305430