Product quality differentiation in a renewable resource oligopoly

Luca Colombo and Paola Labrecciosa
Authors registered in the RePEc Author Service: Luca Colombo and Luca Colombo

Journal of Environmental Economics and Management, 2022, vol. 111, issue C

Abstract: The typical assumption in the literature on oligopoly exploitation of natural resources is that all units of extracted resource have the same commercial value. We depart from this assumption by allowing a constant share θ of the available resource stock to be associated with higher commercial value, thus introducing product quality differentiation. We interpret θ as a measure of resource quality and study the impact of an increase in θ on resource exploitation and social welfare. The main finding of our analysis is that an increase in resource quality can be welfare-reducing.

Keywords: Renewable resources; Differential games; Product quality; Social welfare; Productive asset oligopoly (search for similar items in EconPapers)
JEL-codes: C73 D43 L13 Q20 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:111:y:2022:i:c:s0095069621001303

DOI: 10.1016/j.jeem.2021.102583

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