Strategic resource dependence

• 成果类型: Article
• 署名作者: Gerlagh, Reyer; Liski, Matti
• 署名单位: Aalto University; Tilburg University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2010.09.007
• 发表日期: 2011
• 页码: 699-727
• 关键词: Dynamic bilateral monopoly; Markov-perfect equilibrium; Depletable resources; energy; Alternative fuels; Oil dependence

摘要

We consider a situation where an exhaustible-resource seller faces demand from a buyer who has a substitute but there is a time-to-build delay for the substitute. We find that in this simple framework the basic implications of the Hotelling model (1931) are reversed: over time the stock declines but supplies increase up to the point where the buyer decides to switch. Under such a threat of demand change, the supply does not reflect the current resource scarcity but it compensates the buyer for delaying the transition to the substitute. The analysis suggests a perspective on costs of oil dependence. (C) 2011 Elsevier Inc. All rights reserved.