Altruistic-Like Equilibrium in a Differential Game of Renewable Resource Extraction

We consider a model of renewable resource extraction described by a differential game with infinite horizon. The environmental problems are often considered from cooperative prospective as selfish behavior of the players may negatively affects not only on other players’ profits, but also on the environment. The reason is the joint stock of resource which is influenced by all players. We characterize the Berge and altruistic equilibrium in a differential game of renewable resource extraction and compare them with the Nash equilibrium. According to the concept of altruistic equilibrium players can choose the part of the other players’ payoffs they support and summarize with the part of their own profit. This equilibrium can be considered as an intermediate between Berge and Nash equilibria. We make numerical simulations and demonstrate theoretical results for the case of n symmetric players.