2017/06/15 by Sebastian Aniţa, Aniţa, Sebastian, Stefan Behringer +5
Economics, Econometrics and Finance · Mathematics · Social Sciences · #Climate Change Policy and Economics #Economic theories and models #Experimental Behavioral Economics Studies #FOS: Mathematics #Optimization and Control (math.OC) #math.OC
paper · pdf · doi:10.48550/arxiv.1706.05930
31 pages, 7 figures
arxiv created 2017/06/15 · openalex publication_date 2017/06/15 · arxiv updated 2017/06/20 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We extend modern Walrasian economics, and in particular the results on Cournot convergence and dynamics, by focusing on renewable resources in a spatial setting. Building on the harvesting model of Behringer and Upmann (2014) we endogenize prices and investigate the two cases of durable and non-durable renewable commodities. We find that endogenizing prices is sufficient to prevent the full exploitation result and look at how competition affects not only the stock but also the temporal incentives for exploitation. We derive convergence results in static and dynamic settings which suggest that the classical Cournotian outcomes may prevail.