Monopoly extraction of a nonrenewable resource facing capacity constrained renewable competition

Min Wang and Jinhua Zhao

Economics Letters, 2013, vol. 120, issue 3, 503-508

Abstract: This paper studies monopoly extraction of a nonrenewable resource with the presence of a competitively supplied capacity constrained renewable substitute. The monopolist staves off the renewable supply when the latter becomes competitive and then lets the resource price jump up.

Keywords: Resource extraction; Renewable substitute; Capacity constraint; Dynamic optimization (search for similar items in EconPapers)
JEL-codes: Q2 Q3 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:120:y:2013:i:3:p:503-508

DOI: 10.1016/j.econlet.2013.06.013

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