Resource Dynamics under Partial Cooperation in an Oligopoly
We study the long-run evolution of a renewable resource which is subject to harvest by partially cooperating players who sell the harvested quantities on distinct markets. We derive explicit expressions for the total harvesting quantity of all players in this general framework and investigate the dependence of the total and relative harvest rates on the level of cooperation, available fish stock, and fishing costs. Combining the biological growth model with oligopoly leads to a nonlinear dynamic law for the evolution of the fish stock in the presence of commercial fishing. We provide also existence results for its equilibrium and examine the asymptotic behavior of the equilibrium.
partial cooperation oligopolies renewable resources equilibrium analyses