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4 - Analytical Results

Strategic Provision

Published online by Cambridge University Press:  02 December 2020

Zili Yang
Affiliation:
State University of New York at Binghamton
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Summary

This chapter re-interprets SEEN and DEEN models as non-cooperative Cournot-Nash games and constructs a cooperative bargaining game on the simplex of social welfare weights for SEEE and DEEE models. The basic models of environmental externality provision are now placed in the strategic setting. In the game-theoretic framework, the chapter studies the coalitional issues by defining and solving the hybrid Nash equilibria of the four basic models. We establish the superiority of the coalition formation based on the Lindahl principle. Again, the numerical example is provided to demonstrate the validity of the analytical results related to coalition analysis and programming codes are offered in the appendix. We also examine the relationship between the non-cooperative Cournot-Nash game and cooperative bargaining game in environmental externality provision issues.

Type
Chapter
Information
The Environment and Externality
Theory, Algorithms and Applications
, pp. 91 - 145
Publisher: Cambridge University Press
Print publication year: 2020

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  • Analytical Results
  • Zili Yang, State University of New York at Binghamton
  • Book: The Environment and Externality
  • Online publication: 02 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108762557.005
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  • Analytical Results
  • Zili Yang, State University of New York at Binghamton
  • Book: The Environment and Externality
  • Online publication: 02 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108762557.005
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Analytical Results
  • Zili Yang, State University of New York at Binghamton
  • Book: The Environment and Externality
  • Online publication: 02 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108762557.005
Available formats
×