Article ID: | iaor20053197 |
Country: | Netherlands |
Volume: | 160 |
Issue: | 1 |
Start Page Number: | 252 |
End Page Number: | 267 |
Publication Date: | Jan 2005 |
Journal: | European Journal of Operational Research |
Authors: | Flp Jnos, Prill Mria, Forg Ferenc |
Keywords: | game theory |
Negotiations to reduce greenhouse gas accumulation in the atmosphere are modeled as extensive games of perfect information. Various solution concepts, such as Nash equilibrium, reaction function equilibrium, correlated equilibrium and bargaining solutions are applied, analyzed and computed. Special reduction techniques are used when the size of the game tree becomes excessive. A new solution concept, the tree-correlated equilibrium, is also introduced. Main features of an Excel add-in designed to compute various solutions are briefly discussed and a sample policy analysis for a special negotiating scenario is discussed.