Exploration for Nonrenewable Resources in a Dynamic Oligopoly: An Arrovian Result
AbstractI investigate two versions of a differential Cournot oligopoly game with nonrenewable resource exploitation, in which each firm may either exploit its own private pool or exploit a common pool jointly with the rivals. Firms use a deterministic technology to invest in exploration activities. In both models, there emerges that (i) the individual exploration effort is higher when each firms has exclusive rights on a pool of its own, and (ii) depending on the assumptions on technology and demand, the aggregate exploration effort is either constant or increasing in the number of firms.
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Date of creation: Jan 2013
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Other versions of this item:
- Luca Lambertini, 2014. "Exploration For Nonrenewable Resources In A Dynamic Oligopoly: An Arrovian Result," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1440011-1-1.
- Luca Lambertini, 2013. "Exploration for Nonrenewable Resources in a Dynamic Oligopoly: An Arrovian Result," Working Paper Series 25_13, The Rimini Centre for Economic Analysis.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-12 (All new papers)
- NEP-BEC-2013-01-12 (Business Economics)
- NEP-COM-2013-01-12 (Industrial Competition)
- NEP-ENV-2013-01-12 (Environmental Economics)
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