Lambertini, Luca
(2017)
Regulating the tragedy of commons: nonlinear feedback solutions of a differential game with a dual interpretation.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 28.
DOI
10.6092/unibo/amsacta/5519.
In: Quaderni - Working Paper DSE
(1096).
ISSN 2282-6483.
Full text available as:
Abstract
A well established dynamic model describing the impact of oligopolistic interaction
on a renewable resource is revisited here to illustrate its dual interpretation
as a waste removal differential game. The regulatory implications
are illustrated by assuming that the public agency may control market price
and possibly also access to the commons. Two different formulations of the
managerial or CSR objective are envisaged, based on a combination of profits
and either output or the individual share of the waste stock. It is shown that
if the representative firm’s objective includes the residual waste stock, there
exists a unique regulated price driving to zero the steady state stock itself.
Hence, the present analysis delivers some useful indications concerning an
appropriate definition of the CSR objective firms should adopt.
Abstract
A well established dynamic model describing the impact of oligopolistic interaction
on a renewable resource is revisited here to illustrate its dual interpretation
as a waste removal differential game. The regulatory implications
are illustrated by assuming that the public agency may control market price
and possibly also access to the commons. Two different formulations of the
managerial or CSR objective are envisaged, based on a combination of profits
and either output or the individual share of the waste stock. It is shown that
if the representative firm’s objective includes the residual waste stock, there
exists a unique regulated price driving to zero the steady state stock itself.
Hence, the present analysis delivers some useful indications concerning an
appropriate definition of the CSR objective firms should adopt.
Document type
Monograph
(Working Paper)
Creators
Keywords
waste removal, resource extraction, feedback information,
regulation, tragedy of commons
Subjects
ISSN
2282-6483
DOI
Deposit date
10 Mar 2017 12:56
Last modified
07 Jun 2017 09:53
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
Keywords
waste removal, resource extraction, feedback information,
regulation, tragedy of commons
Subjects
ISSN
2282-6483
DOI
Deposit date
10 Mar 2017 12:56
Last modified
07 Jun 2017 09:53
URI
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