UDC 519.83
NASH EQUILIBRIUM IN A SPECIAL CASE OF SYMMETRIC RESOURCE
EXTRACTION GAMES
Abstract. The study complements available results on the existence of Nash equilibrium in resource extraction games
with an arbitrary number of agents. In the proposed model, it is assumed that the players have identical preferences,
the utility function is a power function, and the sequence of states from the joint investments is determined via geometric random walk.
An iterative method is used for constructing a nonrandomized stationary Nash equilibrium in the infinite horizon game.
It is shown that the equilibrium belongs to the set of Pareto inefficient strategies.
Keywords: stochastic games, resource extraction, capital accumulation,
stationary Nash equilibrium, power utility function, geometric random walk.
FULL TEXT
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