IDEAS home Printed from https://ideas.repec.org/p/ven/wpaper/202518.html
   My bibliography  Save this paper

Wealth Sharing or Rights Sharing? Stable Coalitions in Resource Extraction on Networks

Author

Listed:
  • Silvia Faggian

    (Ca’ Foscari University of Venice)

  • Dominika Machowska

    (University of Warsaw)

  • Agnieszka Wiszniewska-Matyszkiel

    (University of Warsaw)

Abstract

This paper investigates the formation of stable coalitions in a differential game of resource extraction where players' resource deposits are interdependent and spatial relations between them are represented as a network. The network structure allows heterogeneity in the spatial distribution of extractable resources. We introduce a new framework for cooperative extraction in which, in addition to side payments, extraction rights can also be shared. The main contribution is the identification of conditions under which partial coalitions with more than three players can be stable, and under which the grand coalition can also be stable. Illustrative examples of such games are provided.

Suggested Citation

  • Silvia Faggian & Dominika Machowska & Agnieszka Wiszniewska-Matyszkiel, 2025. "Wealth Sharing or Rights Sharing? Stable Coalitions in Resource Extraction on Networks," Working Papers 2025: 18, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2025:18
    as

    Download full text from publisher

    File URL: https://www.unive.it/web/fileadmin/user_upload/dipartimenti/DEC/doc/Pubblicazioni_scientifiche/working_papers/2025/WP_DSE_faggian_machowska_wiszniewska_18_25.pdf
    File Function: First version, anno
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nowak, Andrzej S., 2008. "Equilibrium in a dynamic game of capital accumulation with the overtaking criterion," Economics Letters, Elsevier, vol. 99(2), pages 233-237, May.
    2. Boucekkine, R. & Camacho, C. & Fabbri, G., 2013. "Spatial dynamics and convergence: The spatial AK model," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2719-2736.
    3. Heather Eckert & Bruno Nkuiya, 2022. "Damage sensitivity and stability in international environmental agreements [Self-enforcing international environmental agreements]," Oxford Economic Papers, Oxford University Press, vol. 74(4), pages 1063-1076.
    4. Emmanuelle Augeraud-Véron & Raouf Boucekkine & Vladimir Veliov, 2019. "Distributed optimal control models in environmental economics: a review," Post-Print hal-02194184, HAL.
    5. Joakim Alderborn & Jesús Marín-Solano, 2025. "A Coalitional Great Fish War Model with Quasi-Hyperbolic Discounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(6), pages 1621-1655, June.
    6. Rabah Amir & Niels Nannerup, 2006. "Information Structure and the Tragedy of the Commons in Resource Extraction," Journal of Bioeconomics, Springer, vol. 8(2), pages 147-165, August.
    7. Michael Hoel & Kerstin Schneider, 1997. "Incentives to participate in an international environmental agreement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(2), pages 153-170, March.
    8. 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.
    9. Emmanuelle Augeraud-Véron & Raouf Boucekkine & Vladimir Veliov, 2019. "Distributed optimal control models in environment economics," Post-Print hal-02145182, HAL.
    10. Kube, Sebastian & Schaube, Sebastian & Schildberg-Hörisch, Hannah & Khachatryan, Elina, 2015. "Institution formation and cooperation with heterogeneous agents," European Economic Review, Elsevier, vol. 78(C), pages 248-268.
    11. Ballestra, Luca Vincenzo, 2016. "The spatial AK model and the Pontryagin maximum principle," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 87-94.
    12. Anna Castañer & Jesús Marín-Solano & Carmen Ribas, 2021. "A time consistent dynamic bargaining procedure in differential games with hterogeneous discounting," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 93(3), pages 555-584, June.
    13. Michèle Breton & Lucia Sbragia & Georges Zaccour, 2010. "A Dynamic Model for International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 25-48, January.
    14. Wagener, Florian & de Zeeuw, Aart, 2021. "Stable partial cooperation in managing systems with tipping points," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    15. Jonathan Cave, 1987. "Long-Term Competition in a Dynamic Game: The Cold Fish War," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 596-610, Winter.
    16. David Levhari & Leonard J. Mirman, 1980. "The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 322-334, Spring.
    17. Emmanuelle Augeraud-Véron & Raouf Boucekkine & Vladimir Veliov, 2019. "Distributed Optimal Control Models in Environmental Economics: A Review," AMSE Working Papers 1902, Aix-Marseille School of Economics, France.
    18. Andrzej Nowak, 2006. "A note on an equilibrium in the great fish war game," Economics Bulletin, AccessEcon, vol. 17(2), pages 1-10.
    19. Pedro Pintassilgo & Michael Finus & Marko Lindroos & Gordon Munro, 2010. "Stability and Success of Regional Fisheries Management Organizations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 377-402, July.
    20. Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2019. "Spatial Groundwater Management: A Dynamic Game Framework and Application to California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-34, January.
    21. Jaśkiewicz, Anna & Nowak, Andrzej S., 2022. "A note on topological aspects in dynamic games of resource extraction and economic growth theory," Games and Economic Behavior, Elsevier, vol. 131(C), pages 264-274.
    22. Fischer, Ronald D. & Mirman, Leonard J., 1996. "The Compleat Fish Wars: Biological and Dynamic Interactions," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 34-42, January.
    23. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
    24. Santiago Rubio & Begoña Casino, 2005. "Self-enforcing international environmental agreements with a stock pollutant," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(2), pages 89-109, June.
    25. Michèle Breton & Michel Keoula, 2012. "Farsightedness in a Coalitional Great Fish War," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(2), pages 297-315, February.
    26. repec:ebl:ecbull:v:17:y:2006:i:2:p:1-10 is not listed on IDEAS
    27. Finus, Michael & Schneider, Raoul & Pintassilgo, Pedro, 2020. "The role of social and technical excludability for the success of impure public good and common pool agreements," Resource and Energy Economics, Elsevier, vol. 59(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Breton, Michèle & Keoula, Michel Yevenunye, 2014. "A great fish war model with asymmetric players," Ecological Economics, Elsevier, vol. 97(C), pages 209-223.
    2. Agnieszka Wiszniewska-Matyszkiel & Rajani Singh, 2020. "When Inaccuracies in Value Functions Do Not Propagate on Optima and Equilibria," Mathematics, MDPI, vol. 8(7), pages 1-25, July.
    3. Joakim Alderborn & Jesús Marín-Solano, 2025. "A Coalitional Great Fish War Model with Quasi-Hyperbolic Discounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(6), pages 1621-1655, June.
    4. Pedro Pintassilgo & Lone Kronbak & Marko Lindroos, 2015. "International Fisheries Agreements: A Game Theoretical Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 689-709, December.
    5. Paulo B. Brito, 2022. "The dynamics of growth and distribution in a spatially heterogeneous world," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(3), pages 311-350, September.
    6. Hassan Benchekroun & Amrita Ray Chaudhuri, 2015. "Cleaner Technologies and the Stability of International Environmental Agreements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(6), pages 887-915, December.
    7. Walker, Adam N. & Weikard, Hans-Peter & Richter, Andries, "undated". "The Rise and Fall of the Great Fish Pact under Endogenous Risk of Stock Collapse," Climate Change and Sustainable Development 206466, Fondazione Eni Enrico Mattei (FEEM).
    8. Lina Mallozzi & Stefano Patri & Armando Sacco, 2015. "Differential Game Approach for International Environmental Agreements with Social Externalities," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 9(3), pages 135-154, December.
    9. Bediako, Kwabena & Nkuiya, Bruno, 2022. "Stability of international fisheries agreements under stock growth uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    10. Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi, 2019. "A Spatiotemporal Framework for the Analytical Study of Optimal Growth Under Transboundary Pollution," Department of Economics University of Siena 813, Department of Economics, University of Siena.
    11. Ngo Long, 2011. "Dynamic Games in the Economics of Natural Resources: A Survey," Dynamic Games and Applications, Springer, vol. 1(1), pages 115-148, March.
    12. Ben White, 2000. "A Review of the Economics of Biological Natural Resources," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 419-462, September.
    13. Marco Battaglini & Bård Harstad, 2016. "Participation and Duration of Environmental Agreements," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 160-204.
    14. Calvo, Emilio & Rubio, Santiago J., 2013. "Dynamic Models of International Environmental Agreements: A Differential Game Approach," International Review of Environmental and Resource Economics, now publishers, vol. 6(4), pages 289-339, April.
    15. Biancardi, Marta & Villani, Giovanni, 2015. "The effects of R&D investments in international environmental agreements with asymmetric countries," Chaos, Solitons & Fractals, Elsevier, vol. 79(C), pages 30-39.
    16. Colombo, Luca & Labrecciosa, Paola, 2019. "Stackelberg versus Cournot: A differential game approach," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 239-261.
    17. Rettieva, A.N., 2012. "Stable coalition structure in bioresource management problem," Ecological Modelling, Elsevier, vol. 235, pages 102-118.
    18. Dahmouni, Ilyass & Sumaila, Rashid U., 2023. "A dynamic game model for no-take marine reserves," Ecological Modelling, Elsevier, vol. 481(C).
    19. Harrison, Rodrigo & Lagunoff, Roger, 2019. "Tipping points and business-as-usual in a global commons," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 386-408.
    20. Mirman, Leonard J. & To, Ted, 2005. "Strategic resource extraction, capital accumulation and overlapping generations," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 378-386, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2025:18. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sassano Sonia (email available below). General contact details of provider: https://edirc.repec.org/data/dsvenit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.