| Article ID: | iaor20083145 |
| Country: | Netherlands |
| Volume: | 37 |
| Issue: | 1 |
| Start Page Number: | 283 |
| End Page Number: | 296 |
| Publication Date: | Dec 1992 |
| Journal: | Annals of Operations Research |
| Authors: | Long N.V. |
| Keywords: | game theory |
Transnational pollution is formulated as a differential game between two sovereign governments. The symmetric open loop Nash equilibrium is shown to yield more pollution than in a cooperative solution. A model of Stackelberg leadership in pollution control is also investigated. The possibility of limit cycles is illustrated, using bifurcation theory.