Halkos, George (2010): Dynamic regulations in non –renewable resources oligopolistic markets.

PDF
MPRA_paper_24774.pdf Download (154Kb)  Preview 
Abstract
Traditional economic theory, up to the middle of the twentieth century, builds up the production functions regardless the inputs’ scarcity. In the last few decades has been clear that both the inputs are depletable quantities and a lot of constraints are imposed in their usage in order to ensure economic sustainability. Furthermore, the management of exploitation and use of natural resources (either exhaustible or renewable) has been discussed by analyzing dynamic models applying methods of Optimal Control Theory. This theory provides solutions that are concerned with a single decision maker who can control the model dynamics facing a certain performance index to be optimized. In fact, market structures or exploitation patterns are often oligopolistic, i.e. there are several decision makers whose policies influence each other. So, game theoretical approaches are introduced into the discussion. According to the theory of continuous time models of Optimal Control, the appropriate analogue of differential games is used. Roughly, this is the extension of Optimal Control, when there is exactly one decision maker, to the case of N(N≥ 2) decision makers interacting with each other.
Item Type:  MPRA Paper 

Original Title:  Dynamic regulations in non –renewable resources oligopolistic markets 
Language:  English 
Keywords:  Nonrenewable resources; dynamic interaction; economic regulation;differential games 
Subjects:  Q  Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3  Nonrenewable Resources and Conservation > Q32  Exhaustible Resources and Economic Development C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61  Optimization Techniques; Programming Models; Dynamic Analysis C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C62  Existence and Stability Conditions of Equilibrium 
Item ID:  24774 
Depositing User:  Nickolaos Tzeremes 
Date Deposited:  04. Sep 2010 02:01 
Last Modified:  13. Feb 2013 11:17 
References:  Basar, T., Olsder, G.J., 1995, Dynamic non cooperative game theory. London:Academic Press. Batabyal, A., 1996a, Consistency and Optimality in a Dynamic Game of Pollution control I: Competition, Environmental and Resource Economics, 8: 205 – 220. Benchekroun, H., (2003), Unilateral Production Restrictionsin a Dynamic Duopoly. Journal of Economic Theory, 111(2): 214 – 239. Benchekroun, H., Long, N.V., (2002), Transboundary Fishery: A Differential Game Model. Economica, 69: 207 – 229. Benhabib, J., Radner, R., (1992), The joint exploitation of a productive asset: a game theoretic approach. Economic Theory, 2: 155 – 190. Chiarella,C., Szidarovszky, F., (2000), The Asymptotic Behaviour of Dynamic Rent – Seeking Games. Computers and Mathematics with Applications, 2: 169 – 178. Clark, C., (1976), Mathematical Bioeconomics. Wiley Interscience, New York. Clark, C., (1980), Restricted access to common – property fishery resources: A game theoretic analysis. In: Dynamic Optimization and Mathematical Economics, ed. T. Liu, Plenum Press, New York. Dasgupta, P., Heal, G., (1979), Economic theory and exhaustible resources, James Nisbet and Cambridge University Press, Welwyn and Cambridge. Dockner, E., Feichitinger, G., Mehlmann, A. (1989), Noncooperative solutions for a differential game model of fishery. Journal of Economic Dynamics and Control, 13: 1– 20. Dockner, E., Sorger, G., (1996), Existence and Properties of Equilibria for a Dynamic Game of Productive Assets. Journal of Economic Theory, 71: 209 – 227. Dockner, E.J., Jorgensen, S., Long, N.V, and Sorger, G., 2000. Differential Games in Economics and Management Science. Cambridge: Cambridge University Press. Lambertini, L., (2007). Oligopoly with Hyperbolic Demand: A Differential Game Approach, University of Bologna, Working paper. Puu, T., (1977), On the Profitability of Exhausting Natural Resources. Journal of Environmental Economics and Management, 4(3): 185 – 199. Puu, T., (1992). Chaos in Duopoly Pricing. Chaos Solitons and Fractals, 6: 573 – 581. Puu, T., (2008). On the stability of Cournot equilibrium when the number of competitors increases. Journal of Economic Behavior and Organization, 66: 445– 456. Szidarovszky, F., Yen, J., 1995, Dynamic Cournot oligopolies with production adjustment costs. Journal of Mathematical Economics, 24: 95101. 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/24774 