Comparison of different Stackelberg solutions in a deterministic dynamic pollution control: the time inconsistency problem revisited

Thomas Vallee

Working Papers from HAL

Abstract: In this paper, we study the two well-known supposed consequences of time inconsistency: the subopti-mality of the time consistent solution, and the assuming increase of the follower's cost. To achieve such a goal, we study different dynamic Stackelberg solutions within a pollution control problem framework. This study is made under the assumption of different information structures, mainly we assume open-loop, feedback and closed-loop structures of information. Some of the numerical results may appear counterintuitive. Hence, there may exist some situations where a time consistent solution is optimal in comparison of the time inconsistent one. Moreover, the perfect discretionary solution may be beneficial to everyone.

Keywords: Time inconsistency; Dynamic Stackelberg game; Pollution control; Incohérence temporelle; Jeux de Stackelberg Dynamique; Contrôle de la pollution (search for similar items in EconPapers)
Date: 2018-07-18
New Economics Papers: this item is included in nep-env
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01843717v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-01843717v1/document (application/pdf)

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:hal:wpaper:halshs-01843717

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().