Economics Optimization of Forest Management

This book presents the economically optimal values and decisions in Iranian Caspian Forests. The optimal harvest decisions were calculated via stochastic dynamic programming. The harvest decisions that maximize the expected present value of all profits over time are made adaptively, conditional on the latest available price and stock information. The results show that you may increase the expected present value via optimal adaptive decisions. Dynamic game theory was applied in a duopsony situation in the timber market and duopoly situation in the product market in northern Iran. The trajectories of the decision probability combination were investigated. It was found that a large number of initial conditions make the decision probability combination follow a special form of attractor and that centers can be expected to appear in typical games.