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• W1044772511 abstract "This chapter discusses games of cake-eating. It focuses on a very simple problem in resource economics: the exploitation of a nonrenewable common-property resource. Game theory studies the resolution of conflicting interests among rational individuals. As long as the players differ ever so slightly in their preferences over the way in which the resources should be allocated, some conflict inherently arises. The static common property problem may appear simplistic: players always grab as much as they can. The dynamic version is less straightforward. A player may deny his rival any future consumption only by exhausting all of the resource in one stroke, but then he must accept the same irreversible, total privation for himself, from now on. The simpler problem is known as cake-eating. It is attractive not only because of its utter simplicity. By happy coincidence, this model is structurally a twin of the Ramsey model, known to most economists. Together this pair forms a natural bridge between the control models that are familiar to us all and the differential games that are probably not. For the cake-eating problem, the literature of resource economics contains two traditions; the state variable may be the level of either resources remaining or resources gone." @default.
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• W1044772511 date "1989-01-01" @default.
• W1044772511 modified "2023-09-27" @default.
• W1044772511 title "On Games of Cake-Eating" @default.
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• W1044772511 doi "https://doi.org/10.1016/b978-0-444-87387-3.50013-x" @default.
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