Daria Ghili

Understanding the quality of the environment: act local, think global?

The aim of our work is to compare the optimal consumption path under various perceptions of the environment: either only the local environmental quality is considered, either both local and the whole environmental quality are taken into account. We study whether taking into account global envi- ronmental quality may better local environmental quality. To this aim we study a N-player game where both local and global amenity value of the en- vironmental quality are considered.We show that local environmental quality may not necessarily be better by this consideration.
In the second part of the talk, we analyse the case in which there is an infinite number of locations and agents are still competitive. This is called a Mean Field Game problem. We explain what is the Mean Field Game associated. Finally, we explain what is the Mean Field Control associated, that is, the case in which agents are cooperative and there is a social planner who opti- mizes.