Competing for endogenous information in an irreversible environmental resource problem. A game-theoretic analysis

The paper analyzes strategic behavior in a two-stage environmental choice problem under different information scenarios. Given uncertainty about environmental cost and irre- versibility of development, “learning without destroying” emerges from strategic compe- tition when information is endogenous and publicly available. This happens since agents trade off the higher payoff of being the first-mover against the potentially free acquisi- tion of endogenous information without developing their own environmental endowment. We prove that in a 2X2 dynamic environmental game with payoff uncertainty and irre- versibility publicly available endogenous information could lead players to destroy less in aggregate terms with respect to the case in which information is exogenous.