When additional resource stocks reduce welfare

doi:10.1016/j.jeem.2009.08.001

When additional resource stocks reduce welfare

2010-01-01

26

PRE

AI

DOI：10.1016/j.jeem.2009.08.001

Original

Original request for help

Save

Abstract

En 中文

In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's Marginal extraction cost decreases. (C) 2009 Elsevier Inc. All rights reserved.

Keywords:

Nonrenewable resources

Dominant firm versus fringe

Nash equilibrium

When additional resource stocks reduce welfare

Abstract

Journal

Organization