![]() This assumption is called strong stochastic dominance. The seminal paper of Levhari and Mirman ( 1980) studies such a strategic optimal growth model assuming that the players have the same logarithmic one-period utilities. The next state is usually given either by a deterministic production function or by some stochastic transition probability. ![]() Their objective is to maximise their individual expected discounted utilities. Two agents own a common natural resource and consume certain amount of the available stock in each time period. In principle, it can be described as follows. This paper deals with a strategic version of the discrete-time one-sector optimal growth model (see Bhattacharya and Majumdar 2007 Stachurski 2009), which plays a crucial role in both economic dynamics and resource economics.
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