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- 2020-10-03 发布于福建
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inefficiency of nash equilibrium
- pollution
problem
china
re
unicon中国联通
life
qe
soner
中国移动通信
中国电信
CHINA MOBILE
romp
competiOn of electronic
commuinication indutry irlinac
Suppose there is pollution in the
market economy, but the government
doesnt take any measures to
control the pollution caused by
enterprises In order to maximize the
profits, the enterprises would rather
sacrifice the environment than
ncrease investment in environmenta
protection equipment initiatively
According to the rational agents
hypothesis, all enterprises wil
take
the self-interest strategy, regardless
of the environment, and it will come
to the Nash equilibrium state
Suppose there are two paper factories alon
a river, both of them must discharge
sewage into the river they can decide
whether to govern the sewage or not, but
if the pollutant content excesses th
e leve
the government will punish both of them
according to the level of pollution
OIf neither of them chooses to govern, then
the pollutant content will excess the level
serious
@2If one of them chooses to govern then
the pollutant content will excess the level
slightly
@Certainly, if both of them choose to
Suppose the profits of 2 firms are both
3, the cost of governing is1, if the
pollutant content excesses the level
slightly, the fine will be 0.6, if the
pollutant content excesses the level
seriously, the fine will be 2.
enterprise
govern
not govern
enterprise 1
dovern
2.2
1.4.24
not govern
24,14
1,1
The Nash Equilibrium are
(not govern, govern, govern, not govern)
So both of them hope that the opponen
will govern the sewage and neither of them
will choose to govern, so the river will be
polluted. This is inefficient for the whole
society.
igno
pollution and
wait the other
r to goveRm
E
R
Suppose the profits of 2 firms are both
3, the cost of governing is1, if the
pollutant content excesses the level
0. Ihtly, the fine will be 0.6, if the
pollutan
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