Piotr Chlebicki: Randomized strategies and game formulation of resource extraction problem

Abstract: The goal of this talk is to present a game theoretic version of resource extraction from a common good. The dynamics of the underlying process correspond to one-dimensional diffusion up to absorption at $0$, implying a trade-off between profitable resource extraction and sustainability. A key problem addressed in the talk is finding a setting, in terms of model parameters, where there exists a non-trivial Nash equilibrium, i.e. an equilibrium that does not result in an immediate extraction of all available resources. To this end we prove existence of and characterize of several non-trivial equilibria where the equilibrium strategies are interpreted as randomized strategies.