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

Lambertini, Luca ; Mantovani, Andrea (2013) Feedback equilibria in a dynamic renewable resource oligopoly: pre-emption, voracity and exhaustion. Bologna: Dipartimento di Scienze economiche - DSE, p. 16. DOI 10.6092/unibo/amsacta/3709. In: Quaderni - Working Paper DSE (890). ISSN 2282-6483.
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Abstract

We extend Fujiwara’s (2008) model to describe a differential oligopoly game of resource extraction under static, linear feedback and nonlinear feedback strategies, generalising his result that steady state feedback outputs are lower than monopoly and static oligopoly equilibrium outputs for any number of firms. Additionally, 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.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Mantovani, Andrea
Keywords
dynamic oligopoly, renewable resources, feedback strategies
Subjects
ISSN
2282-6483
DOI
Deposit date
24 Jun 2013 09:46
Last modified
03 Oct 2013 08:04
URI

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