On the profitability of production perturbations in a dynamic natural resource oligopoly
AbstractStatic oligopoly analysis predicts that if a single firm in Cournot equilibrium were to be constrained to contract its production marginally, its profits would fall. on the other hand, if all the firms were simultaneously constrained to reduce their productino, thus moving the industry towards monopoly output, each firm's profit would rise. We show that these very intuitive results may not hold in a dynamic oligopoly.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 27 (2003)
Issue (Month): 7 (May)
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Other versions of this item:
- BENCHEKROUN, Hassan & GAUDET, Gérard, 1997. "On the Profitability of Production Constraints in a Dynamic Natural Resource Oligopoly," Cahiers de recherche 9717, Universite de Montreal, Departement de sciences economiques.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
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