Van Moer, Geert (2022): Horizontal agreements about the use of a natural resource.
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Abstract
I analyze horizontal agreements about the use of a natural resource. I consider a Cournot duopoly where production depends on two inputs, a natural resource and a basket of other resources, according to a production technology with constant returns to scale. I compare three regimes. (1) The competitive benchmark is defined such that firms operate with the cost-minimizing input combination. (2) A joint absolute usage target lowers the absolute usage of the natural resource. It also lowers the usage in relative terms, per unit of production, except with a fixed-proportions production technology. (3) A joint relative usage target mimics the competitive benchmark.
Item Type: | MPRA Paper |
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Original Title: | Horizontal agreements about the use of a natural resource |
Language: | English |
Keywords: | Horizontal Agreements; Natural Resources |
Subjects: | L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets L - Industrial Organization > L4 - Antitrust Issues and Policies > L41 - Monopolization ; Horizontal Anticompetitive Practices Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q38 - Government Policy |
Item ID: | 113878 |
Depositing User: | Geert Van Moer |
Date Deposited: | 27 Jul 2022 23:05 |
Last Modified: | 27 Jul 2022 23:05 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/113878 |