Abstract
We consider a resource management problem in which the management objective is to minimize fluctuations in resource economics. Stabilizing management policies consist of memoryless state feedback control strategies for a class of discrete-time resource models which contain unknown but bounded fluctuations. The underlying theory is based on conditions developed for Lyapunov-type stability of sets. The design of the stabilizing policies is illustrated by a simulation example from resource economics. Specifically, employment of fishermen is stabilized by using a subsidizing and taxing policy in an open-access common-property fishery in which the value of the resource and the resource level fluctuate, and where entry and exit dynamics are determined by fluctuating revenues obtained from the fishery.
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This work was supported by NSF and AFOSR under Grant No. ECS-86-02524.
The support by the Yrjö Jahnsson Foundation is greatly acknowledged.
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Kaitala, V., Leitmann, G. Stabilizing employment in a fluctuating resource economy. J Optim Theory Appl 67, 1–16 (1990). https://doi.org/10.1007/BF00939732
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DOI: https://doi.org/10.1007/BF00939732