Regulating the tragedy of commons: nonlinear feedback solutions of a differential game with a dual interpretation
Luca Lambertini ()
Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna
A well established dynamic model describing the impact of oligopolistic interaction on a renewable resource is revisited here to illustrate its dual interpretation as a waste removal differential game. The regulatory implications are illustrated by assuming that the public agency may control market price and possibly also access to the commons. Two different formulations of the managerial or CSR objective are envisaged, based on a combination of profits and either output or the individual share of the waste stock. It is shown that if the representative firm’s objective includes the residual waste stock, there exists a unique regulated price driving to zero the steady state stock itself. Hence, the present analysis delivers some useful indications concerning an appropriate definition of the CSR objective firms should adopt.
JEL-codes: C73 L13 Q20 Q53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-env and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp1096
Access Statistics for this paper
More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().