Duopoly in Exhaustible Resource Exploration and Extraction

Strategic considerations of exploration and extraction are investigated in a two player, two period, two stage perfect equilibrium framework. Relative to two "plant" monopoly, the duopolists explore more and extract more period by period. A mixed game in which there is co-operation "upstream" in exploration and Cournot competition "downstream" in quantities extracted is investigated. We also note that increasing returns to scale in exploration can introduce an unstable interior solution with a corner solution the presumed stable equilibrium.


Issue Date:
1988-06
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/275214
Language:
English
Total Pages:
20
Series Statement:
IER No. 721




 Record created 2018-07-19, last modified 2020-10-28

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