Group for Research in Decision Analysis

G-2018-92

A fair and time-consistent sharing of the joint exploitation payoff of a fishery

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We consider the problem of efficiently managing a fishery where pollution externalities are present. The open-access bionomic model is analyzed in an \(n\)-player differential game framework with two-state-variables, i.e., the fish stock and the pollution stock. We characterize the non-cooperative feedback-Nash equilibrium and cooperative solution, and define an egalitarian sharing rule to allocate the joint welfare maximizing payoff over an infinite time horizon, and show that this rule is time consistent.

, 22 pages