Optimal Tariffs on Exhaustible Resources: The Case of Quantity Setting
AbstractConstructing a dynamic game model of trade of an exhaustible resource, this paper compares feedback Nash and Stackelberg equilibria. We consider two di erent leadership scenarios: leadership by the importing country, and leadership by the exporting country. We numerically show that as compared to the Nash equilibrium, both countries are better o if the importing country is a leader, but that the follower becomes worse o if the exporting country is a leader. Consequently, the world welfare is highest under the importing country's leadership and lowest under the exporting country's leadership.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 82.
Length: 21 pages
Date of creation: Feb 2012
Date of revision: Feb 2012
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dynamic game; feedback Nash equilibrium; feedback Stackelberg equilibrium;
Other versions of this item:
- Kenji Fujiwara & Ngo Van Long, 2012. "Optimal Tariffs On Exhaustible Resources: The Case Of Quantity-Setting," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1240004-1-1.
- Kenji Fujiwara & Ngo Van Long, 2012. "Optimal Tariffs on Exhaustible Resources : The Case of Quantity Setting," CIRANO Working Papers 2012s-02, CIRANO.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-COM-2012-02-27 (Industrial Competition)
- NEP-ENE-2012-02-27 (Energy Economics)
- NEP-ENV-2012-02-27 (Environmental Economics)
- NEP-GTH-2012-02-27 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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