On oligopolistic markets for nonrenewable natural resources.

Journal Article (Journal Article)

Noncooperative oligopoly behavior in nonrenewable resource markets is anlayzed under stationary conditions assuming perfect information. The existence of Cournot-Nash equilibria in output paths is established under standard cost and demand assumptions, and a number of comparative dynamic results are obtained. If all suppliers have the same costs, for instance, and total reserves are fixed, either increasing the number of suppliers or equalizing their reserve holdings causes more rapid resource use. If suppliers' costs differ, equilibrium involves inefficient production; high-cost reserves may even be exhausted before low-cost ones.-Authors

Full Text

Duke Authors

Cited Authors

  • Lewis, TR; Schmalensee, R

Published Date

  • January 1, 1980

Published In

Volume / Issue

  • 95 / 3

Start / End Page

  • 475 - 491

International Standard Serial Number (ISSN)

  • 0033-5533

Digital Object Identifier (DOI)

  • 10.2307/1885089

Citation Source

  • Scopus