To raise children, to guarantee a certain way of life, and to retire with a certain amount of capital can be accomplished in many different ways, particularly when couples are faced with the possibility of unemployment or poor returns to savings while trying to balance current and future...

Soft OR tools have increasingly been used to support the strategic development of companies at operational and managerial levels. However, we still lack OR applications that can be useful in dealing with the “implementation gap”, understood as the scarcity of resources available to...

We utilize Viability theory to evaluate the effects of CAP. A differential equation describes the dynamic development of soil productivity. If farmers do without entitlement, they are free in soil handling. And as we assume they are short-term profit maximizers, they miss to pay attention to...

In this paper the scope of Bergstrom's (1982) results is studied. Moreover, his analysis is extended assuming that extraction cost is directly related to accumulated extractions. For the case of a competitive market it is found that the optimal policy is a constant tariff if extraction is...

Many economic problems can be formulated as dynamic games in which strategically interacting agents choose actions that determine the current and future levels of a single capital stock. We study necessary conditions that allow us to characterize Markov perfect Nash equilibria (MPNE) for these...

We consider a dynamic (differential) game with three players competing against each other. Each period each player can allocate his resources so as to direct his competition towards particular rivals -- we call such competition selective. The setting can be applied to a wide variety of cases:...

This paper yields sufficient conditions for Pareto inoptimality of controls forming Nash equilibria in differential games. In Appendix a result on existence of open loop Nash equilibria is added.

We propose a new methodology exploring Markov perfect equilibrium strategies in differential games with regime switching. Specifically, we develop a general game with two players having two kinds of strategies. Players choose an action that influences the evolution of a state variable, and...

How do families behave dynamically? We provide a framework for studying economic problems in which family behavior is essential. Our key innovation is the inclusion of imperfectly altruistic agents in an otherwise standard consumption–savings problem with exogenous income risk. This gives rise...

In this paper we analyze the dynamics of an R&D differential game allowing for technological spillovers and sigmoid learning functions of multiproduct oligopolies. We demonstrate how the presence of learning together with spillovers may generate a rich set of outcomes, varying from constant...