EXPLORATION FOR NONRENEWABLE RESOURCES IN A DYNAMIC OLIGOPOLY: AN ARROVIAN RESULT

LUCA LAMBERTINI
2014 International Game Theory Review  
I investigate two versions of a differential Cournot oligopoly game with nonrenewable resource exploitation, in which each firm may either exploit its own private pool or exploit a common pool jointly with the rivals. Firms use a deterministic technology to invest in exploration activities. In both models, there emerges that (i) the individual exploration effort is higher when each firms has exclusive rights on a pool of its own, and (ii) depending on the assumptions on technology and demand,
more » ... ology and demand, the aggregate exploration effort is either constant or increasing in the number of firms. JEL Codes: C73, L13, Q30
doi:10.1142/s0219198914400118 fatcat:pferpf5oyfhobpqvvwwikd3w6y