On the Estimation of the Initial Stock in the Problem of Resource Extraction

Anna Tur, Ekaterina Gromova and Dmitry Gromov
Additional contact information
Anna Tur: Faculty of Applied Mathematics and Control Processes, St Petersburg State University, University Emb. 7/9, 199034 St. Petersburg, Russia
Ekaterina Gromova: Faculty of Applied Mathematics and Control Processes, St Petersburg State University, University Emb. 7/9, 199034 St. Petersburg, Russia
Dmitry Gromov: Faculty of Applied Mathematics and Control Processes, St Petersburg State University, University Emb. 7/9, 199034 St. Petersburg, Russia

Mathematics, 2021, vol. 9, issue 23, 1-10

Abstract: We consider a differential game of non-renewable resource extraction, in which the players do not know the precise value of the resource stock and, thus, have to make an estimate. We define the value of information about the initial stock and give recommendations for the choice of the estimate depending on the parameters of the problem. Further, we consider the situation where the players only know the bounds for the stock of the resource and solve the problem of computing the optimal estimate, such that it minimizes the players’ losses in the worst-case scenario. The analysis allows us to give a simple rule for the choice of the optimal estimate of the resource stock.

Keywords: differential game; cooperative solution; imperfect information; value of information; non-renewable resource extraction (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2227-7390/9/23/3099/pdf (application/pdf)
https://www.mdpi.com/2227-7390/9/23/3099/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:9:y:2021:i:23:p:3099-:d:692441

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().