A Complementarity Approach for an Environmental–Economic Game with Coupling Emission Constraints |
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Authors: | Lanshan Han Satish V Ukkusuri |
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Institution: | 1. School of Civil Engineering, Purdue University, 550 Stadium Mall Dr., West Lafayette, Indiana, 47907, USA
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Abstract: | We consider an environmental–economic game where players face not only Cournot competition but also coupling environmental and individual capacity constraints. Under the complementarity problem framework, we study the existence of the (normalized) Nash equilibrium, computability of the equilibria, and the closed form expressions of the optimal weights. We also report numerical results of two examples as well as the insights gained from them. |
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