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A dynamic game of waste management

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  • Jørgensen, Steffen

Abstract

The paper studies a differential game of waste management (disposal). Each of three neighbouring regions is endowed with a stock of waste, but no additional waste is generated in any region and waste does not decay from natural reasons. A region's stock of waste can be reduced only by dumping on its neighbours. The model features two externalities: a strategic externality caused by the fact that the payoff of a coalition depends on the actions of players outside the coalition, and a stock externality caused by the fixed overall amount of waste. The game has a finite time horizon and it is shown that intertemporal core-theoretic cooperation can be sustained under intuitive conditions.

Suggested Citation

  • Jørgensen, Steffen, 2010. "A dynamic game of waste management," Journal of Economic Dynamics and Control, Elsevier, vol. 34(2), pages 258-265, February.
    • Handle: RePEc:eee:dyncon:v:34:y:2010:i:2:p:258-265
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    References listed on IDEAS

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    1. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
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    4. Marc Germain & Philippe Toint & Henry Tulkens & Aart Zeeuw, 2006. "Transfers to Sustain Dynamic Core-Theoretic Cooperation in International Stock Pollutant Control," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 251-274, Springer.
    5. Predtetchinski, Arkadi, 2007. "The strong sequential core for stationary cooperative games," Games and Economic Behavior, Elsevier, vol. 61(1), pages 50-66, October.
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    8. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, Enero-Abr.
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