A Dynamic Multi-Objective Duopoly Game with Capital Accumulation and Pollution

This paper studies a discrete-time dynamic duopoly game with homogenous goods. Both firms have to decide on investment where increases production capacity so that they are able put larger quantity the market. The downside, however, is raises pollution. multiple objectives in sense each one maximizes discounted profit stream and appreciates clean environment as well. We obtain some surprising results. First, it known from continuous-time differential literature invest more under feedback information structure compared an open-loop one, we detect scenarios opposite holds. Second, Nash equilibrium, capital stock sensitive environmental appreciation than case.