Feedback equilibria in a dynamic renewable resource oligopoly: Pre-emption, voracity and exhaustion

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2014
Volume: 47
Issue: C
Pages: 115-122

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We revisit a recent literature on productive asset exploitation describing a differential oligopoly game of resource extraction under static, linear feedback and nonlinear feedback strategies, where we explicitly allow for the possibility of resource exhaustion. We show that (i) feedback rules entail resource exhaustion for a finite number of firms; and (ii) feedback strategies are more aggressive than static ones as long as the resource stock is large enough, in accordance with the acquired view based on the traditional pre-emption argument associated with feedback information.

Technical Details

RePEc Handle
repec:eee:dyncon:v:47:y:2014:i:c:p:115-122
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25