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Nonrenewable Resource Exploitation by a Dominant Seller and a Fringe Group with Rising Costs

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  • John Hartwick

Abstract

A dominant seller with a large finite stock of low cost nonrenewable resource sets a price path for a price-taking fringe group with deposits of rising extraction costs. The nature of profit-maximizing prices and quantities for the dominant seller is investigated and in particular, the way a market is shared by the two selling agents period by period in a discrete time framework.

Suggested Citation

  • John Hartwick, 1980. "Nonrenewable Resource Exploitation by a Dominant Seller and a Fringe Group with Rising Costs," Working Paper 386, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:386
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