Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/101575 
Year of Publication: 
1988
Series/Report no.: 
Diskussionsbeiträge - Serie II No. 61
Publisher: 
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft, Konstanz
Abstract: 
A simple oligopolistic common-pool exhaustible resource game is considered. By analysing punishment strategies, including optimal punishments, it is possible to determine which cartel agreements are implementable in a non-cooperative play of the game. Joint-profit maximizing allocations are sustainable for sufficiently low discounting, but in general it is shown that no folk-theorem exists for this model. In particular, for sufficiently high elasticities of demand, it is shown that optimal punishments are not sufficiently severe to enforce stationary symmetric extraction paths, thus confirming the hypothesis that sufficient market power is needed for a cartel to be stable.
Document Type: 
Working Paper

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