A Differential Game Model for the Extraction of Nonrenewable Resources with Random Initial Times-The Cooperative and Competitive Cases

Ekaterina Viktorovna Gromova, José Daniel López-Barrientos

Research output

3 Citations (Scopus)

Abstract

In this work, we propose a model for the extraction of a nonrenewable resource in an economy where, initially, only one agent is enabled to perform extraction tasks. However, at certain nonpredictable (random) times, more companies receive the government's approval for extracting the country's resources. We provide a setup suitable for the use of standard dynamic programming results for both, the competitive and cooperative schemes; we develop the corresponding HJB equations, prove a verification theorem, and give an example. Our framework is inspired by the trends that oil industries are experiencing in countries like Mexico and Russia.

Original languageEnglish
Article number1640004
JournalInternational Game Theory Review
Volume18
Issue number2
DOIs
Publication statusPublished - 1 Jun 2016

Fingerprint

Differential Games
HJB Equation
Resources
Dynamic programming
Dynamic Programming
Industry
Theorem
Model
Differential games
Non-renewable resources
Framework
Trends
Government
Standards
Oils
Russia
HJB equation
Oil industry
Mexico

Scopus subject areas

  • Computer Science(all)
  • Business and International Management
  • Statistics, Probability and Uncertainty

Cite this

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