search query: @indexterm POWER / total: 583
reference: 205 / 583
| Author: | Karp, L. |
| Title: | Monopoly power can be disadvantageous in the extraction of a durable nonrenewable resource |
| Journal: | International Economic Review
1996 : NOV, VOL. 37:4, p. 825-850 |
| Index terms: | MONOPOLY POWER ECONOMICS |
| Language: | eng |
| Abstract: | The author studies a Markov equilibrium for the case where a monopolist extracts a nonrenewable resource which is converted to a durable good, which then depreciates at a constant rate. The author shows that in a stationary, continuous time model (infinite horizon, infinitesimal period of commitment) monopoly power can be disadvantageous. Numerical experiments confirm that this can also occur in a finite horizon, discrete model. This result is compared with previous examples of disadvantageous market power, obtained using two-period models. |
SCIMA