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A dynamic private property resource game with asymmetric firms

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  • Luca Grilli

    (Università degli Studi di Foggia)

  • Michele Bisceglia

    (Università degli Studi di Bergamo)

Abstract

In this paper, we consider a non-cooperative differential game, in which each of the two competing firms (privately) holds and manages a renewable natural resource in order to produce a homogeneous good. We suppose that each firm’s resource stock grows at a different rate, depending on environmental factors or on firms’ technical experience and skills. We find an (asymmetric) linear feedback Nash equilibrium, in which each player’s strategy depends only on its available resource stock. We then carry out both short-run and steady-state comparative static analyses, from a social welfare point of view as well.

Suggested Citation

  • Luca Grilli & Michele Bisceglia, 2020. "A dynamic private property resource game with asymmetric firms," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(1), pages 109-127, June.
    • Handle: RePEc:spr:decfin:v:43:y:2020:i:1:d:10.1007_s10203-019-00266-7
    DOI: 10.1007/s10203-019-00266-7
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    References listed on IDEAS

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