A dynamic game model of optimal stockpile management with price dynamics and constraints

More frequently examined as optimal control problems, economic problems in the optimal management of strategic resource stockpiles can be rigorously studied and solved by formulating them as differential games between competing sovereign producers and consumers. This approach, while less studied, provides a richer and more realistic model of real world stockpiling scenarios. While existing differential game models of stockpiling problems offer varying levels of complexity, several important features have been ignored in the literature. A new model incorporating some of these details is described in this paper, as well as formulations and algorithmic approaches for identifying the Nash equilibria of the model.