When additional resource stocks reduce welfare
In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's marginal extraction cost decreases.
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"The Efficient Use Of Multiple Sources Of A Nonrenewable Resource Under Supply Cost Uncertainty,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 245-258, 02.
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- GAUDET, Gérard & LASSERRE, Pierre, 2008. "The Efficient Use of Multiple Sources of a Nonrenewable Resource under Supply Cost Uncertainty," Cahiers de recherche 04-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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"Ordering the Extraction of Polluting Nonrenewable Resources,"
IDEI Working Papers
415, Institut d'Économie Industrielle (IDEI), Toulouse.
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"Entry Deterrence In The Commons,"
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"Strong time-consistency in the cartel-versus-fringe model,"
Other publications TiSEM
5ba46a2e-d763-4a8c-939b-3, Tilburg University, School of Economics and Management.
- Groot, Fons & Withagen, Cees & de Zeeuw, Aart, 2003. "Strong time-consistency in the cartel-versus-fringe model," Journal of Economic Dynamics and Control, Elsevier, vol. 28(2), pages 287-306, November.
- Groot, A.M. & Withagen, C.A.A.M. & de Zeeuw, A.J., 1996. "Strong Time-Consistency in the Cartel-versus-Fringe Model," Discussion Paper 1996-22, Tilburg University, Center for Economic Research.
- Kemp, Murray C & Long, Ngo Van, 1980. "On Two Folk Theorems Concerning the Extraction of Exhaustible Resources," Econometrica, Econometric Society, vol. 48(3), pages 663-73, April.
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