Individual and strategic behaviors in a dynamic extraction problem: results from a within-subject experiment in continuous time

• Published in: Applied economics Vol. 55; no. 39; pp. 4539 - 4562
• Main Authors: Djiguemde, M., Dubois, D., Sauquet, A., Tidball, M.
• Format: Journal Article
• Language: English
• Published: London Routledge 21.08.2023; Taylor & Francis Ltd; Taylor & Francis (Routledge)
• Subjects: applied econometrics; Behavior; Differential games; dynamic optimization; Economic analysis; Economic theory; Economics and Finance; experimental economics; Extraction; Groundwater; Humanities and Social Sciences; renewable resources; Experimental economics; Applied econometrics; Renewable resources; Dynamic optimization; Differential games
• ISSN: 0003-6846; 1466-4283
• DOI: 10.1080/00036846.2022.2129576

We conduct a laboratory experiment to test a continuous-time model that represents a dynamic groundwater extraction problem in an infinite horizon. We compare the observations to the equilibrium path of the usual behaviours, for the case where the player is alone in extracting the resource (optimal...