A COOPERATIVE INCENTIVE EQUILIBRIUM FOR A RESOURCE-MANAGEMENT PROBLEM

A two-country dynamic game model of whaling is considered. It is assumed that the countries have exact information, possibly with some time delay, about each other's whaling efforts measured by the number of vessels involved in whaling. It is shown how to construct equilibrium strategies which are affine in the available information and which, when jointly carried out, realize a given Pareto-optimal decision. Numerical results suggest that some of these strategies are credible; i.e., the countries do believe that the announced strategies will be followed.