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Sustainable Cooperation in a Bicriteria Game of Renewable Resource Extraction

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  • Denis Kuzyutin

    (Faculty of Applied Mathematics and Control Processes, Saint Petersburg State University, Universitetskaya nab. 7/9, 199034 St. Petersburg, Russia
    Department of Mathematics, HSE University, Soyuza Pechatnikov ul. 16, 190008 St. Petersburg, Russia)

  • Nadezhda Smirnova

    (Department of Mathematics, HSE University, Soyuza Pechatnikov ul. 16, 190008 St. Petersburg, Russia)

Abstract

We study a multi-objective finite-horizon game model of renewable, common resource extraction where the players have two separate objectives (one is economic success; the other describes the players’ environmental concern). We derive the cooperative strategy and the subgame-perfect Pareto equilibrium in linear-state non-stationary feedback strategies by employing the dynamic programming approach. Since the utility is transferable only based on the economic criterion, we need to revise the concept of time consistency and the payoff-distribution procedure to provide a mechanism for sustainable long-term cooperation. All the results are illustrated with a numerical example.

Suggested Citation

  • Denis Kuzyutin & Nadezhda Smirnova, 2023. "Sustainable Cooperation in a Bicriteria Game of Renewable Resource Extraction," Mathematics, MDPI, vol. 11(6), pages 1-15, March.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:6:p:1497-:d:1101403
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    References listed on IDEAS

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    1. Rettieva, Anna N., 2017. "Cooperation in Bioresource Management Problems," Conference Papers 10464, Graduate School of Management, St. Petersburg State University.
    2. Veijo Kaitala & Marko Lindroos, 2007. "Game Theoretic Applications to Fisheries," International Series in Operations Research & Management Science, in: Andres Weintraub & Carlos Romero & Trond Bjørndal & Rafael Epstein & Jaime Miranda (ed.), Handbook Of Operations Research In Natural Resources, chapter 0, pages 201-215, Springer.
    3. Ngo Long, 2011. "Dynamic Games in the Economics of Natural Resources: A Survey," Dynamic Games and Applications, Springer, vol. 1(1), pages 115-148, March.
    4. David Levhari & Leonard J. Mirman, 1980. "The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 322-334, Spring.
    5. Breton, Michèle & Keoula, Michel Yevenunye, 2014. "A great fish war model with asymmetric players," Ecological Economics, Elsevier, vol. 97(C), pages 209-223.
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    Cited by:

    1. Kuzyutin, Denis & Smirnova, Nadezhda, 2023. "A dynamic multicriteria game of renewable resource extraction with environmentally concerned players," Economics Letters, Elsevier, vol. 226(C).

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