Sustainable Cooperation in a Bicriteria Game of Renewable Resource Extraction

Denis Kuzyutin and Nadezhda Smirnova ()
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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
Nadezhda Smirnova: Department of Mathematics, HSE University, Soyuza Pechatnikov ul. 16, 190008 St. Petersburg, Russia

Mathematics, 2023, vol. 11, issue 6, 1-15

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.

Keywords: renewable resource extraction; fishery-management model; multi-objective game; Pareto equilibria; subgame-perfect equilibrium; payoff-distribution procedure; cooperative solution; sustainable cooperation; time consistency (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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