Template-type: ReDIF-Paper 1.0
Author-Name: Manjira Datta
Author-Email: Manjira.Datta@asu.edu
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=1039626
Author-Workplace-Name: W. P. Carey School of Business Department of Economics
Author-Workplace-Homepage: http://wpcarey.asu.edu/ecn/
Author-Name: Leonard Mirman
Author-Email: 
Author-Homepage: http://wpcarey.asu.edu/Directory/stafffaculty.cfm?cobid=2133549
Author-Workplace-Name: University of Virginia
Author-Workplace-Homepage: 

Title: Externalities, Market Power, and Resource Extraction
Abstract: This paper analyzes the effect of market power in a model with dynamic and biological externalities. When several countries harvest fish in international waters the evolution of fish population is affected by their joint action, thus, generating a biological and a dynamic externality. If there is trade in fish, the market-clearing prices depend on the harvesting and consumption decision made in every country.  Therefore, market-clearing prices generate another type of interdependence. The planners' make their policy decision by taking account of various externalities.We find a subgame perfect Cournot-Nash equilibrium and the conditions under which it may be efficient. We also study the role of different externalities in generating inefficiency.		
Classification-JEL: C73, D51, D90, F12
Keywords: 
File-URL:http://wpcarey.asu.edu/tools/mytools/pubs_admin/FILES/wp97_12.pdf
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Handle: RePec:asu:wpaper:2132842