Abstract
Due to developments on the oil market in the 1970s, the theory of exhaustible resources was extended with the cartel-versus-fringe model to characterize markets with one big coherent cartel and a large number of small suppliers called the fringe. Because cartel and fringe are leader and follower, the von Stackelberg solution concept is appropriate for the supply side of this market. The solution for the cartel-versus-fringe model, presented in the previous literature, proved to be time-inconsistent for a large plausible range of values for extraction costs and initial reserves. This paper provides a (strongly) time-consistent solution for the cartel-versus-fringe model.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
