Duopoly in Exhaustible Resource Exploration and Extraction

John M. Hartwick and Perry Sadorsky

No 275214, Queen's Institute for Economic Research Discussion Papers from Queen's University - Department of Economics

Abstract: Strategic considerations of exploration and extraction are investigated in a two player, two period, two stage perfect equilibrium framework. Relative to two "plant" monopoly, the duopolists explore more and extract more period by period. A mixed game in which there is co-operation "upstream" in exploration and Cournot competition "downstream" in quantities extracted is investigated. We also note that increasing returns to scale in exploration can introduce an unstable interior solution with a corner solution the presumed stable equilibrium.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 20
Date: 1988-06
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:queddp:275214

DOI: 10.22004/ag.econ.275214

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