Some Effects of Asymmetries in a Common Pool Natural Resource Oligopoly
Hassan Benchekroun (),
Gérard Gaudet () and
Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ
We consider a renewable resource being exploited in common by firms that compete both in the output market and in the exploitation of the resource. We show that the introduction of the slightest cost differentiation among the firms can have a drastic effect on the nature of the equilibria that may be expected as compared to the identical cost case. To do this, we take as a benchmark case a Markov Perfect Nash Equilibrium that exists with identical cost firms, with the property that the firms play a linear strategy up to some endogenously determined threshold level of the stock and the static Cournot equilibrium strategy beyond that threshold. Having shown that an equilibrium of that nature is not sustainable with asymmetric cost, we fully characterize a Markov Perfect Nash Equilibrium of the differential game for that case.
Pages: 28 pages
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Some Effects of Asymmetries in a Common Pool Natural Resource Oligopoly (2014)
Working Paper: Some Effects of Asymmetries in a Common Pool Natural Resource Oligopoly (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mtl:montec:14-2012
Access Statistics for this paper
More papers in Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ Contact information at EDIRC.
Bibliographic data for series maintained by Sharon BREWER ().