Artem Sedakov – Saint Petersburg State University, Russia
In this talk, we investigate a model of river pollution as a dynamic game with network externalities. We suppose that firms, which are located along the river flow, produce goods and compete in a market. The production results in water pollution, and the pollution emissions of a firm can influence downstream counterparts. We analyze this model in detail by incorporating a firm’s location and analytically comparing equilibrium and cooperative behavior. Additionally, we examine the model under myopic behavior where firms place no weight on their future gains.