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A Dynamic Game with Interaction between Kantian Players and Nashian Players

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  • Ngo Van Long

Abstract

This paper defines the concept of feedback Kant-Nash equilibrium for a discrete-time model of resource exploitation by infinitely-lived Kantian and Nashian players, where we define Kantian agents as those who act in accordance with the categorical imperative. We revisit a well-known dynamic model of the tragedy of the commons and ask what would happen if not all agents are solely motivated by self interest. We establish that even without external punishment of violation of social norms, if a sufficiently large fraction of the population consists of Kantian agents, the tragedy of the commons can be substantially mitigated.

Suggested Citation

  • Ngo Van Long, 2019. "A Dynamic Game with Interaction between Kantian Players and Nashian Players," CESifo Working Paper Series 7729, CESifo.
    • Handle: RePEc:ces:ceswps:_7729
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    References listed on IDEAS

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    1. Pierre von Mouche & Federico Quartieri (ed.), 2016. "Equilibrium Theory for Cournot Oligopolies and Related Games," Springer Series in Game Theory, Springer, number 978-3-319-29254-0, June.
    2. 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.
    3. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 9, pages 178-203, Palgrave Macmillan.
    4. Roemer, John E., 2015. "Kantian optimization: A microfoundation for cooperation," Journal of Public Economics, Elsevier, vol. 127(C), pages 45-57.
    5. Vernon L. Smith, 2003. "Constructivist and Ecological Rationality in Economics," American Economic Review, American Economic Association, vol. 93(3), pages 465-508, June.
    6. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
    7. Grafton, R. Quentin & Kompas, Tom & Long, Ngo Van, 2017. "A brave new world? Kantian–Nashian interaction and the dynamics of global climate change mitigation," European Economic Review, Elsevier, vol. 99(C), pages 31-42.
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    Cited by:

    1. Thomas Eichner & Rüdiger Pethig, 2020. "Kant–Nash tax competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1108-1147, October.
    2. Jean-François Laslier, 2023. "Universalization and altruism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(4), pages 579-594, May.
    3. Eichner, Thomas & Pethig, Rüdiger, 2024. "International environmental agreements when countries behave morally," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    4. Alistair Ulph & David Ulph, 2023. "International Cooperation and Kantian Moral Behaviour – Complements or Substitutes?," Economics Discussion Paper Series 2302, Economics, The University of Manchester.
    5. Eichner, Thomas & Pethig, Rüdiger, 2022. "Kantians defy the economists’ mantra of uniform Pigovian emissions taxes," Ecological Economics, Elsevier, vol. 200(C).
    6. Thomas Eichner & Rüdiger Pethig, 2022. "International Environmental Agreements When Countries Behave Morally," CESifo Working Paper Series 10090, CESifo.

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    More about this item

    Keywords

    Kantian equilibrium; rule of behavior; categorical imperative;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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