Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5098395 | Journal of Economic Dynamics and Control | 2014 | 8 Pages |
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.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Luca Lambertini, Andrea Mantovani,