Game Theory Approach On Sustainable Tourism
Author(s)
R. Mosetti
Abstract
A two agents non-cooperative model is applied in the context of tourism. It is
shown that a sharing of resources between the public and private sector gives an
optimal solution which is stable in the sense that for both agents the deviation
from the optimal solution is not convenient. The optimal solution corresponds to
the social optimum.
Keywords: sustainable tourism, non-cooperative game theory.
1 Introduction
Tourism is a typical industry in which externalities are present due to the access
to common resources (Tyrrell [1], Sinclair [2]). The problem is under the
so-called \“tragedy of commons” (Hardin [3], Ostrom [4]) in which each
economic subject is trying to maximise his own profit from common resources
like the environment. Action has to be undertaken by the public sector (local,
regional or national authorities) in order to re-allocate the non-optimal
equilibrium arising from such externalities. This paper is a short note concerning
the application of game theory to a situation in which the private sector and the
public one are the agents in a non-cooperative game. Some application of game
theory to social conflicts is reported for instance in Binmore [5].
2 A two-agent model
A two agents model is considered to investigate the optimal solutions. The first
actor is the private sector, the second the public services.
Keywords
sustainable tourism, non-cooperative game theory.
Related Book
Other papers in this volume
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