DOI

We consider a differential game of non-renewable resource extraction, in which the players do not know the precise value of the resource stock and, thus, have to make an estimate. We define the value of information about the initial stock and give recommendations for the choice of the estimate depending on the parameters of the problem. Further, we consider the situation where the players only know the bounds for the stock of the resource and solve the problem of computing the optimal estimate, such that it minimizes the players’ losses in the worst-case scenario. The analysis allows us to give a simple rule for the choice of the optimal estimate of the resource stock.
Original languageEnglish
Article number3099
Number of pages10
JournalMathematics
Volume9
Issue number23
DOIs
StatePublished - 1 Dec 2021

    Research areas

  • Cooperative solution, Differential game, Imperfect information, Non-renewable resource extraction, Value of information

    Scopus subject areas

  • Mathematics(all)

ID: 88983685