We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game... more We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game. We provide an analysis of the cartel-versus-fringe model when agents play simultaneously. We show that contrary to the case where the cartel is a leader and the fringe a follower, there exists a phase where both supply simultaneously positive quantities. When the number of fringe …rms is …nite we show that there is no closed-loop equilibrium that can result in the extraction path prescribed by an open-loop Nash equilibrium. However, in the limit case of an in…nite number of purely price taking fringe …rms we claim that the open-loop Nash and the feedback Nash equilibrium coincide.
established in 1975, provides research-based policy solutions to sustainably reduce poverty and e... more established in 1975, provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. The Institute conducts research, communicates results, optimizes partnerships, and builds capacity to ensure sustainable food production, promote healthy food systems, improve markets and trade, transform agriculture, build resilience, and strengthen institutions and governance. Gender is considered in all of the Institute's work. IFPRI collaborates with partners around the world, including development implementers, public institutions, the private sector, and farmers' organizations. IFPRI is a member of the CGIAR Consortium.
International Journal of Technology Management, 2012
ABSTRACT This paper provides a quantitative analysis of different equilibrium concepts employed i... more ABSTRACT This paper provides a quantitative analysis of different equilibrium concepts employed in the literature on the cartel-fringe models. It is shown that small changes in parameter values can greatly affect outcomes due to changes in extraction schedules. Furthermore, it is shown that results of the closed-loop Stackelberg equilibrium are often closer to the results of the open-loop Nash equilibrium than to those of the open-loop Stackelberg equilibrium.
The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
The International Food Policy Research Institute (IFPRI), established in 1975, provides research-... more The International Food Policy Research Institute (IFPRI), established in 1975, provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. The Institute conducts research, communicates results, optimizes partnerships, and builds capacity to ensure sustainable food production, promote healthy food systems, improve markets and trade, transform agriculture, build resilience, and strengthen institutions and governance. Gender is considered in all of the Institute's work. IFPRI collaborates with partners around the world, including development implementers, public institutions, the private sector, and farmers' organizations. IFPRI is a member of the CGIAR Consortium.
De scherpe prijsstijging van voedsel in de laatste drie jaar bedreigt de voedselzekerheid van min... more De scherpe prijsstijging van voedsel in de laatste drie jaar bedreigt de voedselzekerheid van minstens 100 miljoen mensen, bovenop de 800 miljoen die al voor de prijsstijging in onzekerheid leefden. Plotselinge pieken in de prijs van de eerste levensbehoeften hebben wereldwijd tot onrust en rellen geleid. Bij voedselrellen in Mozambique en Haïti in 2009 en 2010 vielen zelfs tientallen slachtoffers. Het is misschien minder bekend dat niet alleen een plotselinge prijsstijging maar ook een abrupte prijsdaling grote gevolgen hebben. Een lage koffieprijs in Honduras leidde in 2002 zelfs tot een hongersnood. Het opvangen van prijsvolatiliteit kan, kortom, van groot belang zijn voor hongerbestrijding. Vanuit dit oogpunt praat onder andere de G20 over de gevolgen van prijsvolatiliteit en komt met aanbevelingen om deze aan te pakken 2 .
We study tax competition when pollution matters. Most notably, we present a dynamic setting, wher... more We study tax competition when pollution matters. Most notably, we present a dynamic setting, where the supply of capital is endogenous. It is shown that tax competition may involve stricter environmental policy than the cooperative outcome.
In the dominant …rm model, we show that an increase of the fringe's reserves of a nonrenewable re... more In the dominant …rm 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 di¤erence between the fringe's extraction cost and the dominant …rm's is positive and large enough.
We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game... more We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game. We provide an analysis of the cartel-versus-fringe model when agents play simultaneously. We show that contrary to the case where the cartel is a leader and the fringe a follower, there exists a phase where both supply simultaneously positive quantities. When the number of fringe …rms is …nite we show that there is no closed-loop equilibrium that can result in the extraction path prescribed by an open-loop Nash equilibrium. However, in the limit case of an in…nite number of purely price taking fringe …rms we claim that the open-loop Nash and the feedback Nash equilibrium coincide.
We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game... more We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game. We provide an analysis of the cartel-versus-fringe model when agents play simultaneously. We show that contrary to the case where the cartel is a leader and the fringe a follower, there exists a phase where both supply simultaneously positive quantities. When the number of fringe …rms is …nite we show that there is no closed-loop equilibrium that can result in the extraction path prescribed by an open-loop Nash equilibrium. However, in the limit case of an in…nite number of purely price taking fringe …rms we claim that the open-loop Nash and the feedback Nash equilibrium coincide.
established in 1975, provides research-based policy solutions to sustainably reduce poverty and e... more established in 1975, provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. The Institute conducts research, communicates results, optimizes partnerships, and builds capacity to ensure sustainable food production, promote healthy food systems, improve markets and trade, transform agriculture, build resilience, and strengthen institutions and governance. Gender is considered in all of the Institute's work. IFPRI collaborates with partners around the world, including development implementers, public institutions, the private sector, and farmers' organizations. IFPRI is a member of the CGIAR Consortium.
International Journal of Technology Management, 2012
ABSTRACT This paper provides a quantitative analysis of different equilibrium concepts employed i... more ABSTRACT This paper provides a quantitative analysis of different equilibrium concepts employed in the literature on the cartel-fringe models. It is shown that small changes in parameter values can greatly affect outcomes due to changes in extraction schedules. Furthermore, it is shown that results of the closed-loop Stackelberg equilibrium are often closer to the results of the open-loop Nash equilibrium than to those of the open-loop Stackelberg equilibrium.
The Policy Research Working Paper Series disseminates the findings of work in progress to encoura... more The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.
The International Food Policy Research Institute (IFPRI), established in 1975, provides research-... more The International Food Policy Research Institute (IFPRI), established in 1975, provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition. The Institute conducts research, communicates results, optimizes partnerships, and builds capacity to ensure sustainable food production, promote healthy food systems, improve markets and trade, transform agriculture, build resilience, and strengthen institutions and governance. Gender is considered in all of the Institute's work. IFPRI collaborates with partners around the world, including development implementers, public institutions, the private sector, and farmers' organizations. IFPRI is a member of the CGIAR Consortium.
De scherpe prijsstijging van voedsel in de laatste drie jaar bedreigt de voedselzekerheid van min... more De scherpe prijsstijging van voedsel in de laatste drie jaar bedreigt de voedselzekerheid van minstens 100 miljoen mensen, bovenop de 800 miljoen die al voor de prijsstijging in onzekerheid leefden. Plotselinge pieken in de prijs van de eerste levensbehoeften hebben wereldwijd tot onrust en rellen geleid. Bij voedselrellen in Mozambique en Haïti in 2009 en 2010 vielen zelfs tientallen slachtoffers. Het is misschien minder bekend dat niet alleen een plotselinge prijsstijging maar ook een abrupte prijsdaling grote gevolgen hebben. Een lage koffieprijs in Honduras leidde in 2002 zelfs tot een hongersnood. Het opvangen van prijsvolatiliteit kan, kortom, van groot belang zijn voor hongerbestrijding. Vanuit dit oogpunt praat onder andere de G20 over de gevolgen van prijsvolatiliteit en komt met aanbevelingen om deze aan te pakken 2 .
We study tax competition when pollution matters. Most notably, we present a dynamic setting, wher... more We study tax competition when pollution matters. Most notably, we present a dynamic setting, where the supply of capital is endogenous. It is shown that tax competition may involve stricter environmental policy than the cooperative outcome.
In the dominant …rm model, we show that an increase of the fringe's reserves of a nonrenewable re... more In the dominant …rm 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 di¤erence between the fringe's extraction cost and the dominant …rm's is positive and large enough.
We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game... more We give a full characterization of the open-loop Nash equilibrium of a nonrenewable resource game. We provide an analysis of the cartel-versus-fringe model when agents play simultaneously. We show that contrary to the case where the cartel is a leader and the fringe a follower, there exists a phase where both supply simultaneously positive quantities. When the number of fringe …rms is …nite we show that there is no closed-loop equilibrium that can result in the extraction path prescribed by an open-loop Nash equilibrium. However, in the limit case of an in…nite number of purely price taking fringe …rms we claim that the open-loop Nash and the feedback Nash equilibrium coincide.
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Papers by Alex Halsema