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—In this paper, we study a class of optimal stochastic control problems involving two different time scales. The fast mode of the system is represented by deterministic state equations whereas the slow mode of the system corresponds to a jump disturbance process. Under a fundamental " ergodicity " property for a class of " infinitesimal control systems "(More)
A stochastic control model is proposed as a paradigm for the design of optimal timing of greenhouse gas (GHG) emission abatement. The resolution of uncertainty concerning climate sensitivity and the technological breakthrough providing access to a carbon-free production economy are modeled as controlled stochastic jump processes. The optimal policy is(More)
This paper deals with the approximation of Nash equilibria in m-player games. We present conditions under which an approximating sequence of games admits near-equilibria that approximate near-equilibria in the limit game. We apply the results to two classes of games: (i) a duopoly game approximated by a sequence of matrix games, and (ii) a stochastic game(More)
This paper deals with the modeling of the strategic allocation of greenhouse gases emission allowances in the EU-wide trading market that results from Kyoto agreement implementation. An M-matrix game is formulated where the players are countries or groups of countries that may have a strategic influence through their allocation of emission allowances and(More)