Losses from competition in a dynamic game model of a renewable resource oligopoly
This article 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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
- Lahiri, Sajal & Ono, Yoshiyasu, 1988. "Helping Minor Firms Reduces Welfare," Economic Journal, Royal Economic Society, vol. 98(393), pages 1199-1202, December.
- James A. Brander & M. Scott Taylor, 1995.
"International Trade and Open Access Renewable Resources: The Small Open Economy Case,"
NBER Working Papers
5021, National Bureau of Economic Research, Inc.
- James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-52, August.
- Benchekroun, Hassan, 2008.
"Comparative dynamics in a productive asset oligopoly,"
Journal of Economic Theory,
Elsevier, vol. 138(1), pages 237-261, January.
- BENCHEKROUN, Hassan, 2005. "The Double Curse of a Common Property Productive Asset Oligopoly," Cahiers de recherche 02-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Shimomura, Koji, 1991. "The feedback equilibria of a differential game of capitalism," Journal of Economic Dynamics and Control, Elsevier, vol. 15(2), pages 317-338, April.
- Tsutsui, Shunichi & Mino, Kazuo, 1990. "Nonlinear strategies in dynamic duopolistic competition with sticky prices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 136-161, October.
- Benchekroun, Hassan & Van Long, Ngo, 2002. "Transboundary Fishery: A Differential Game Model," Economica, London School of Economics and Political Science, vol. 69(274), pages 207-21, May.
- Long, Ngo Van & Wang, Shengzu, 2009.
"Resource-grabbing by status-conscious agents,"
Journal of Development Economics,
Elsevier, vol. 89(1), pages 39-50, May.
- Fershtman, Chaim & Kamien, Morton I, 1987. "Dynamic Duopolistic Competition with Sticky Prices," Econometrica, Econometric Society, vol. 55(5), pages 1151-64, September.
- Tornell, Aaron & Velasco, Andes, 1992. "The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries?," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1208-31, December.
- Jun-ichi Itaya & Koji Shimomura, 1999.
"A Dynamic Conjectural Variations Model in the Private Provision of Public Goods: a Differential Game Approach,"
Discussion Paper Series
104, Research Institute for Economics & Business Administration, Kobe University.
- Itaya, Jun-ichi & Shimomura, Koji, 2001. "A dynamic conjectural variations model in the private provision of public goods: a differential game approach," Journal of Public Economics, Elsevier, vol. 81(1), pages 153-172, July.
- Hassan Benchekroun & Ngo Van Long, 2006.
"The Curse of Windfall Gains in a Non Renewable Resource Oligopoly,"
CIRANO Working Papers
- Hassan Benchekroun & Ngo Van Long, 2006. "The Curse Of Windfall Gains In A Non Renewable Resource Oligopoly ," Australian Economic Papers, Wiley Blackwell, vol. 45(2), pages 99-105, 06.
- Hassan Benchekroun & Ngo Van Long, 2006. "The Curse Of Windfall Gains In A Non Renewable Resource Oligopoly," Departmental Working Papers 2006-24, McGill University, Department of Economics.
- Benchekroun, Hassan, 2003. "Unilateral production restrictions in a dynamic duopoly," Journal of Economic Theory, Elsevier, vol. 111(2), pages 214-239, August.
- Rubio, Santiago J. & Casino, Begona, 2002. "A note on cooperative versus non-cooperative strategies in international pollution control," Resource and Energy Economics, Elsevier, vol. 24(3), pages 251-261, June.
- Erwin Bulte & Henk Folmer & Wim Heijman, 1995.
"Open access, common property and scarcity rent in fisheries,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 6(4), pages 309-320, December.
- Bulte, E.H. & Folmer, H. & Heijman, W.J.M., 1995. "Open access, common property and scarcity rent in fisheries," Other publications TiSEM cd0fb066-a26c-4bc6-be92-5, Tilburg University, School of Economics and Management.
- Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, November.
When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:33:y:2011:i:1:p:1-11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.