Dynamic models of the firm with green energy and goodwill with a constant size of the output market

Herbert Dawid, Richard F. Hartl, Peter Kort

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

This paper analyzes a dynamic model of the firm. We focus on the effect of investment in green energy. We explicitly take into account that green energy has a positive side effect, namely that it contributes to the goodwill of the firm and thus increases demand. Different models are proposed and the solutions range from monotonic saddle point convergence to history-dependent Skiba behavior.
Original languageEnglish
Title of host publicationGames in Management Science
EditorsP.O. Pineau, S. Sigué, S. Taboubi
Place of PublicationCham
PublisherSpringer
Pages131-146
DOIs
Publication statusPublished - 2020

Publication series

NameInternational Series in Operations Research & Management Science
Volume280

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Keywords

  • green capital
  • goodwill
  • optimal investment
  • Skiba curve

Cite this

Dawid, H., Hartl, R. F., & Kort, P. (2020). Dynamic models of the firm with green energy and goodwill with a constant size of the output market. In P. O. Pineau, S. Sigué, & S. Taboubi (Eds.), Games in Management Science (pp. 131-146). (International Series in Operations Research & Management Science; Vol. 280). Cham: Springer. https://doi.org/10.1007/978-3-030-19107-8_8