The effect of disastrous regime shifts on the non - cooperative use

نویسنده

  • Florian K Diekert
چکیده

6 This paper presents an analytically tractable dynamic game in which agents jointly use a 7 resource. The resource replenishes fully but collapses irreversibly should total use exceed 8 a threshold. The initial level of resource use is known to be safe. Because experimentation 9 only reveals whether the threshold has been crossed or not, and the consequence of crossing 10 the threshold is disastrous, it is socially optimal, and a Nash Equilibrium, to update 11 beliefs about the location of the threshold only once (if at all). These learning dynamics 12 facilitate coordination on a “cautious equilibrium”. If the initial safe level is sufficiently 13 valuable, the equilibrium implies no experimentation and coincides with the first-best. 14 The less valuable the initial safe value, the more experimentation. For sufficiently low 15 initial values, immediate depletion of the resource is the only equilibrium. The potentially 16 beneficial effect of the threat of a disastrous regime shift is robust to a variety of extensions. 17 When the regime shift is not disastrous, but the damage increases sufficiently strongly the 18 more the threshold is exceeded, learning may be gradual. (175 words) 19

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Influence of Zeolite and Biological Fertilizer under Different Irrigation Regime on Quantitative and Qualitative Traits of Sugar beet (Beta Vulgaris L.)

In order to study the effect of zeolite and biologic fertilizers application under different irrigation regime on yield and quantitative traits in sugar beet, a research project was conducted according split-split plot experiment based on randomized complete block design with four replicates. The main factor included irrigation regime at two levels (Normal and stress), sub factor included zeoli...

متن کامل

Threshord Effect of the Economic Growth Rate on the Development of Renewable Energy: Evidences from OPEC Countries

 This paper studies the non linear relationship between energy prices, natural resources rent opportunities and renewable energy consumption under different economic growth rates for OPEC member countries during the 2005-2016 period.  Using a panel smooth transition regression (PSTR) model, our findings prove a non-linear relationship between renewable energy consumption and the rate of economi...

متن کامل

Improved Profitability and Competition in Two Level Supply Chain by Non-Cooperative Games

This article by modeling a non-cooperative dynamic game tries to improve profitability and competition. This paper has considered how the manufacturer interacts with multiple competitor distributors. Each distributor also determines the optimal distribution price and inventory replenishment policies to maximize their profits. The issue form a non-cooperative dynamic game. Distributors formulate...

متن کامل

تئوری رژیم و کاربرد آن برای جریان‌های یک‌نواخت و غیر یک‌نواخت

Suitable stable channel design and optimization of river geometry can reduce cost of projects. The regime theory provides the possibility of empirical and semi-empirical investigations of stable channel design in which erosion and sediment transport are in equilibrium. The objective of this research is an investigation and a comparison of the influence of uniform and non-uniform flows on the pr...

متن کامل

Assessment Effect of Different Irrigation Regime and Fertilizer Combinations on Seed Yield, Radiation Use Efficiency and Biochemical Parameters of Corn

New irrigation methods under different nutritional element supplies for maize production was designed and tested for evaluate quantitative and qualitative parameters by split-plot arrangement according complete randomized block design with three replications. Different Irrigation regimes was belonged to main plots (Conventional furrow irrigation: CFI or A1, Alternate furrow irrigation: AFI or A...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2016