The Curse of Windfall Gains in a Non Renewable Resource Oligopoly

Hassan Benchekroun () and Ngo Van Long

CIRANO Working Papers from CIRANO

Abstract: We investigate the effect of stock discovery on the profits of non-identical oligopolists. We show that a uniform addition to all stocks could harm firms that are originally larger than average. One conclusion that could be drawn from the results is that a new technology that leads to more efficient exploitation of the available resource is not necessarily welcomed by all firms.

On étudie les effets de la découverte des stocks de ressources sur les profits des firmes asymétriques. On montre que l’augmentation uniforme des stocks pour toutes les firmes pourrait désavantager celles qui sont initialement les plus grandes. On déduit que la découverte d’une nouvelle technologie qui permet une augmentation d’efficacité d’extraction pour toutes les firmes pourrait réduire le profit de certaines firmes.

Keywords: non-renewable resource; oligopoly; stock discovery; découverte des stocks; oligopole; ressources naturelles (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ene, nep-env and nep-mic
Date: 2006-05-01
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http://www.cirano.qc.ca/pdf/publication/2006s-10.pdf (application/pdf)

Related works:
Working Paper: THE CURSE OF WINDFALL GAINS IN A NON RENEWABLE RESOURCE OLIGOPOLY (2006)
Journal Article: THE CURSE OF WINDFALL GAINS IN A NON RENEWABLE RESOURCE OLIGOPOLY * (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:cir:cirwor:2006s-10

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