Rawlsian Intergenerational Justice as a Markov-perfect Equilibrium in a Resource Technology
The Rawlsian maximin criterion is combined with nonpaternalistic altruistic preferences in a nonrenewable resource technology. The maximin programme is shown to be time-inconsistent for a subset of initial conditions. A solution to this intergenerational conflict is found, under a given assumption, as a generically unique subgame-perfect equilibrium.
KeywordsEquilibrium Strategy Good Reply Capital Productivity Resource Stock Time Inconsistency
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