Dynamic common property resources and environmental problems

Problems of interacting common-property resources are set up as stochastic differential games. A class of models is solved where equilibrium closed-loop strategies keep harvest rates proportional to stocks. Corrective taxes, etc., are considered.Dedicated to G. LeitmannEarlier versions of this paper (Ref. 1) were presented at the International Conference on Economics and Control, Cambridge University, England, June 18–21, 1979, and at the Winter Econometric Society Meetings, Atlanta, Georgia, December 1978. Space limitations shortened this paper; a complete working paper is available from the authors. The authors would like to extend their appreciation to George Leitmann, who first introduced them to differential games.