Mixed-strategy game simulation on environmental pollution based on system dynamics

Environmental pollution abatement is a complex project. A system dynamics model is set up to study the behaviors of the governments who manage environment pollution and the enterprises who produce with contamination generates, which relationship can be described as a mixed-strategy game. The simulation result shows a dynamic process full of fluctuations that behind the game-theoretic equilibrium. Therefore, a double penalty is suggested for the equilibrium stabilization and the environmental improvement. Finally a qualitative analysis is given to do some explains.