Monitoring cooperative equilibria in a stochastic differential game (Q1331106)

The objective of this paper is to study a class of equilibria for stochastic differential games which are based on monitoring an implicit cooperative solution. The equilibrium is reached by implementing a random triggering scheme which ranges the mode of play when there is an indication that at least one player may be departing from the cooperative solution. It is shown that these equilibria can be designed in such away that they generate payoffs which dominate those obtained via the classical feedback Nash equilibrium for the original stochastic diffusion game. The final part of this paper describes the numerical experiments done with the fisheries exploitation model which exhibit the dominance of some cooperative equilibria over the noncooperative feedback Nash equilibrium.