Cartel Deception in Nonrenewable Resource Markets

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Cartel Deception in Nonrenewable Resource Markets
Tracy R Lewis
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That Is, cartel marginal revenue is no greater with w than with w'. For £ t £ S ', we have P'(t) ^ E'(t), where these are the respective elasticities of demand, and Q'(t) >^ Q(t). Writing cartel marginal revenue as a function of E, the foregoing results establish that q (t) >^ q'(t) for £ t £ S'. But the integral of q' from to S ' equals w'l by the reserve constraint, and the integral of q over this same interval is less than or equal to wl (since S >_ S'). The two preceding sentences then impl...y that w'l £ wl, contradicting the assumption with which we began. Therefore P'(0)

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