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A differential environmental game with coupling constraints

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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Submitted on : Saturday, May 30, 2020 - 11:36:30 AM
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Mabel Tidball, Georges Zaccour. A differential environmental game with coupling constraints. Optimal Control Applications and Methods, Wiley, 2009, 30 (2), pp.197-207. ⟨10.1002/oca.849⟩. ⟨hal-02658064⟩



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