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.