Externalities, Market Power, and Resource Extraction
This paper analyzes the effect of market power in a model with dynamic and biological externalities. When several countries harvest fish in international waters the evolution of fish population is affected by their joint action, thus, generating a biological and a dynamic externality. If there is trade in fish, the market-clearing prices depend on the harvesting and consumption decision made in every country. Therefore, market-clearing prices generate another type of interdependence. The planners' make their policy decision by taking account of various externalities.We find a subgame perfect Cournot-Nash equilibrium and the conditions under which it may be efficient. We also study the role of different externalities in generating inefficiency.
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- Leonard J. Mirman & Manjira Datta, 1996.
"Dynamic Externalities and Policy Coordination,"
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- Manjira Datta & Leonard J. Mirman, "undated". "Dynamic Externalities and Policy Coordination," Working Papers 97/11, Arizona State University, Department of Economics.
- Manjira Datta & Leonard Mirman, "undated". "Dynamic Externalities and Policy Coordination," Working Papers 2132841, Department of Economics, W. P. Carey School of Business, Arizona State University.
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Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 587-603, August.
- Manjira Datta, "undated". "Externalities and Price Dynamics," Working Papers 9710, Arizona State University, Department of Economics.
- DATTA, Manjira, 1994. "Externalities and Price Dynamics," CORE Discussion Papers 1994006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- James A. Brander & M. Scott Taylor, 1996.
"Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel,"
NBER Working Papers
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- Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124-124.
- Fischer, Ronald D. & Mirman, Leonard J., 1992. "Strategic dynamic interaction : Fish wars," Journal of Economic Dynamics and Control, Elsevier, vol. 16(2), pages 267-287, April.
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