Losses from competition in a dynamic game model of a renewable resource oligopoly
AbstractThis paper develops a dynamic game model of an asymmetric oligopoly with a renewable resource to reconsider welfare effects of increases in the number of firms. We show that increasing not only the number of inefficient firms but also that of Efficient firms reduces welfare, which sharply contrasts to a static outcome. It is discussed that the closed-loop property of feedback strategies plays a decisive role in this finding.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 51.
Length: 18 pages
Date of creation: Apr 2010
Date of revision: Apr 2010
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Di erential game; Asymmetric oligopoly; Feedback strategy;
Other versions of this item:
- Fujiwara, Kenji, 2011. "Losses from competition in a dynamic game model of a renewable resource oligopoly," Resource and Energy Economics, Elsevier, vol. 33(1), pages 1-11, January.
- 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
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-COM-2010-05-02 (Industrial Competition)
- NEP-ENV-2010-05-02 (Environmental Economics)
- NEP-GTH-2010-05-02 (Game Theory)
- NEP-IND-2010-05-02 (Industrial Organization)
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