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On comparing monopoly and competition in exhaustible resource exploitation

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  • Gaudet, Gerard
  • Lasserre, Pierre

Abstract

It Is Widely Believed That Exhaustible Resource Monopolies Do Not Enjoy As Much Market Power As Standard Non Resource Monopolies, and May Even Produce in a Socially Optimum Way. We Argue That This Paradoxical Result Arises From an Inappropriate Comparison Methodology. When Similar Assumptions Are Applied to the Resource, and the Conventional, Cases, We Show That the Resource Monopoly Behaves As Expected, I.E. Restricts Supply.
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Suggested Citation

  • Gaudet, Gerard & Lasserre, Pierre, 1988. "On comparing monopoly and competition in exhaustible resource exploitation," Journal of Environmental Economics and Management, Elsevier, vol. 15(4), pages 412-418, December.
  • Handle: RePEc:eee:jeeman:v:15:y:1988:i:4:p:412-418
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