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A differential environmental game with coupling constraints

Authors
  • Tidball, Mabel
  • Zaccour, Georges
Publication Date
Jan 01, 2009
Identifiers
DOI: 10.1002/oca.849
OAI: oai:HAL:hal-02658064v1
Source
HAL-Descartes
Keywords
Language
English
License
Unknown
External links

Abstract

We consider a finite-horizon two-player differential game where the players face a common terminal environmental constraint. Our aim is to verify whether the result obtained in a static context, namely, that the Pareto-optimal cooperative solution can be attained as a normalized noncooperative Rosen equilibrium, can be generalized to a dynamic setting. We show that this is not the case. However, we provide a taxation mechanism of players' emissions that forces them to implement the less-polluting cooperative strategies.

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