Monopoly Extraction of an Exhaustible Resource with Two Markets With an Application to Antibiotics
نویسندگان
چکیده
Although much has been written about the implications of monopoly power for the rate of extraction of natural resources have been explored, the speci c case in which the resource can be sold in two markets with different elasticities of demand has escaped notice. This analysis is relevant in the case of many resources – such as natural gas used for power generation and household heating, or oil used for making plastics and as fuel – and is particularly useful in current debates regarding the simultaneous use of antibiotics (where their effectiveness is a resource) for growth promotion in cattle and poultry, and for treatment in humans.
منابع مشابه
Monopoly Extraction of an Exhaustible Resource with Two Markets
Although much has been written about the implications of monopoly power for the rate of extraction of natural resources, the specific case in which the resource can be sold in two markets with different elasticities of demand has escaped notice. We find that a monopolist facing two markets with differing iso-elastic demand schedules extracts more rapidly than the social planner, whether or not ...
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