Uncertainty in a Fisherey Management Game
CentER Discussion Paper No. 2005-36
13 Pages Posted: 21 Apr 2005
Date Written: December 2004
Abstract
In this paper, we analyze the consequences of taking noise into account in a simple two person fishery management game. Both a stochastic and deterministic formulation are considered. Compared to the noise-free model it is shown that the used stochastic framework has no implications for the equilibrium actions, whereas in the deterministic formulation as well the number of as the equilibrium actions themselves depend on the model parameters. The various equilibrium actions predicted using the deterministic framework seem to be quite plausible.
Keywords: Linear quadratic differntial games, feedback information structure, soft-constrained Nash equilibrium, infinite planning horizon
JEL Classification: C61, C72, C73
Suggested Citation: Suggested Citation