Citation:
Journal of Economic Dynamics and Control. 2005, vol. 29, nº 6, p. 1073-1096
ISSN:
0165-1889
DOI:
10.1016/j.jedc.2004.08.004
Sponsor:
We are grateful to the editor Kenneth L. Judd and an anonymous referee for
helpful comments. The research of the first author was supported by MCYT under
project BEC2002-02361 and JCYL under project VA51/03, cofinanced by FEDER
funds. The research of the second author was supported by MCYT under project
BFM2002–00425 and JCYL under project VA099/04 cofinanced by FEDER funds.
In this paper, we present a method for the characterization of Markov perfect Nash equilibria being Pareto efficient in non-linear differential games. For that purpose, we use a new method for computing Nash equilibria with Markov strategies by means of a systIn this paper, we present a method for the characterization of Markov perfect Nash equilibria being Pareto efficient in non-linear differential games. For that purpose, we use a new method for computing Nash equilibria with Markov strategies by means of a system of quasilinear partial differential equations. We apply the necessary and sufficient conditions derived to characterize efficient Markov perfect Nash equilibria to dynamic fishery games.[+][-]