Time-consistent renewable resource management with present bias and regime shifts
| العنوان: | Time-consistent renewable resource management with present bias and regime shifts |
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| المؤلفون: | Arvaniti, Maria, B. Krishnamurthy, Chandra Kiran, 1977, Crepin, Anne-Sophie |
| المصدر: | Journal of Economic Behavior and Organization. 207:479-495 |
| مصطلحات موضوعية: | Renewable resources, Regime shifts, Hyperbolic discounting, Present bias, Uncertainty, Markov equilibrium |
| الوصف: | We investigate the extraction plan of present-biased decision makers managing a renew-able resource stock whose growth is uncertain and which could undergo a rapid and sig-nificant change when stock falls below a threshold. We show that the Markov-Nash equi-librium extraction policy is unique, time consistent, and increasing in resource stock. An increase in the threshold leads to increased resource extraction, rather than the precau-tionary reduction in extraction often observed with exponential discounting. An increase in the degree of present bias also leads to an increase in resource extraction. Our analy-sis suggests that accounting for and appropriately dealing with resource managers' present bias may be important to understand resource use sustainability. |
| وصف الملف: | electronic |
| الوصول الحر: | https://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-217968Test https://doi.org/10.1016/j.jebo.2023.01.016Test https://umu.diva-portal.org/smash/get/diva2:1819647/FULLTEXT01.pdfTest |
| قاعدة البيانات: | SwePub |
| تدمد: | 01672681 18791751 |
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| DOI: | 10.1016/j.jebo.2023.01.016 |