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Nonrenewable Resource Exploitation by a Dominant Seller and A Fringe Group with Rising Costs

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  • Hartwick, John M.

Abstract

Nonrenewable Resource Exploitation by a Dominant Seller and a Fringe Group with Rising Costs. A dominant seller with a large _finite stock of low cost nonrenewable resource sets a price path for a price-taking fringe group with deposits of rising extraction costs. The nature of profit-maximizing prices and quantities for the dominant seller is investigated and in particular the way in which the market is shared by the two selling agents period by period in a discrete time framework.

Suggested Citation

  • Hartwick, John M., 1980. "Nonrenewable Resource Exploitation by a Dominant Seller and A Fringe Group with Rising Costs," Queen's Institute for Economic Research Discussion Papers 275160, Queen's University - Department of Economics.
    • Handle: RePEc:ags:queddp:275160
    DOI: 10.22004/ag.econ.275160
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    References listed on IDEAS

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    1. Geoffrey Heal, 1976. "The Relationship Between Price and Extraction Cost for a Resource with a Backstop Technology," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 371-378, Autumn.
    2. Albert L. Nichols & Richard J. Zeckhauser, 1977. "Stockpiling Strategies and Cartel Prices," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 66-96, Spring.
    3. Robert M. Solow & Frederic Y. Wan, 1976. "Extraction Costs in the Theory of Exhaustible Resources," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 359-370, Autumn.
    4. Salant, Stephen W, 1976. "Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 1079-1093, October.
    5. Hnyilicza, Esteban & Pindyck, Robert S., 1976. "Pricing policies for a two-part exhaustible resource cartel : The case of OPEC," European Economic Review, Elsevier, vol. 8(2), pages 139-154, August.
    6. Hartwick, John M, 1978. "Exploitation of Many Deposits of an Exhaustible Resource," Econometrica, Econometric Society, vol. 46(1), pages 201-217, January.
    7. David Levhari & Nissan Liviatan, 1977. "Notes on Hotelling's Economics of Exhaustible Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 177-192, May.
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    9. Cremer, Jacques & Weitzman, Martin L., 1976. "OPEC and the monopoly price of world oil," European Economic Review, Elsevier, vol. 8(2), pages 155-164, August.
    10. Pindyck, Robert S, 1978. "Gains to Producers from the Cartelization of Exhaustible Resources," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 238-251, May.
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