Frugals, Militants and the Oil Market
Document type :
Partie d'ouvrage
Title :
Frugals, Militants and the Oil Market
Author(s) :
Pineau, Pierre-Olivier [Auteur]
Billette de Villemeur, Etienne [Auteur]
Lille économie management - UMR 9221 [LEM]
Billette de Villemeur, Etienne [Auteur]
Lille économie management - UMR 9221 [LEM]
Scientific editor(s) :
Pierre-Olivier Pineau (dir.)
Simon Sigué (dir.)
Sihem Taboubi (dir.)
Simon Sigué (dir.)
Sihem Taboubi (dir.)
Book title :
Games in Management Science
Publisher :
Springer
Publication date :
2019-08-15
English keyword(s) :
Prisoner’s dilemma
Oil production
Militancy
Frugality
Oil production
Militancy
Frugality
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
The oil market has often been modeled as an oligopoly where the strategic players are producers. With climate change, a new sort of game appeared, where environmental militants play a significant role by opposing some ...
Show more >The oil market has often been modeled as an oligopoly where the strategic players are producers. With climate change, a new sort of game appeared, where environmental militants play a significant role by opposing some projects, to contain oil production. At the same time, consumers continue to use increasing amounts of oil, independently of oil price fluctuations. Should we oppose oil projects, reduce demand or both? We investigate in this paper the double prisoner’s dilemma in which individuals find themselves, with respect to oil consumption and their environmental stance towards the oil industry. We find that the collective outcome of such game is clearly better when a frugal behaviour is adopted, without being militant. The Nash equilibrium, resulting from the individual strategies, leads by contrast to the worst possible outcome: high prices, high consumption and high environmental (negative) impact. An effective environmental action should avoid opposing oil supply sources (a costly militant act) and help consumers becoming more frugal.Show less >
Show more >The oil market has often been modeled as an oligopoly where the strategic players are producers. With climate change, a new sort of game appeared, where environmental militants play a significant role by opposing some projects, to contain oil production. At the same time, consumers continue to use increasing amounts of oil, independently of oil price fluctuations. Should we oppose oil projects, reduce demand or both? We investigate in this paper the double prisoner’s dilemma in which individuals find themselves, with respect to oil consumption and their environmental stance towards the oil industry. We find that the collective outcome of such game is clearly better when a frugal behaviour is adopted, without being militant. The Nash equilibrium, resulting from the individual strategies, leads by contrast to the worst possible outcome: high prices, high consumption and high environmental (negative) impact. An effective environmental action should avoid opposing oil supply sources (a costly militant act) and help consumers becoming more frugal.Show less >
Language :
Anglais
Audience :
Internationale
Popular science :
Non
Comment :
Essays in Honor of Georges Zaccour
Collections :
Source :
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