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

Luca Lambertini () and Andrea Mantovani

Journal of Economic Dynamics and Control, 2014, vol. 47, issue C, 115-122

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.

Keywords: Dynamic oligopoly; Renewable resources; Feedback strategies (search for similar items in EconPapers)
JEL-codes: C73 L13 Q2 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Feedback equilibria in a dynamic renewable resource oligopoly: pre-emption, voracity and exhaustion (2013)
Working Paper: Feedback equilibria in a dynamic renewable resource oligopoly: pre-emption, voracity and exhaustion (2013)
Working Paper: Feedback Equilibria in a Dynamic Renewable Resource Oligopoly: Pre-Emption, Voracity and Exhaustion (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:47:y:2014:i:c:p:115-122

DOI: 10.1016/j.jedc.2014.08.010

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