Benchekroun, Hassan; Halsema, Alex; Withagen, Cees - In: Journal of Environmental Economics and Management 59 (2010) 1, pp. 109-114
In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We...
