class 23 asym info monopoly post

class 23 asym info monopoly post - Announcement Class 23...

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Announcement
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Class 23 epeated Games II Repeated Games II Asymmetric Information and Monopoly
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Problem Set ote the Reading ± Note the Reading ± Do the problem set before the next lecture: You train today’s material and prepare for next time
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Last Time epeated Game ± Repeated Game ± Evaluating Infinite Streams of Payoffs ± Example: Public Good Provision
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Outline epeated Game: Example II ± Repeated Game: Example II ± Monopoly and Inefficiencies ± Elastic Demand ± Asymmetric Information
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Fishing: Drama of the Commons Sardine Fishing in Portugal gg Two neighboring fishing producer’s organizations (POs) decide the catch of sardines among its members. c L c H c L 5/5 1/7 The more on PO catches, the harder it becomes to catch fishes for the other. atching fish causes an externality c H 7 / 12 / 2 Æ Catching fish causes an externality Æ Individual decision making results in over- exploitation of the stock order to create common rules for all the members of each PO, both POs have established In order to create common rules for all the members of each PO, both POs have established agreements between them and with other POs. These agreed rules aim to reduce fishing effort and aim to regulate the local market. [….] They contribute to reduce the number of times that fleets go to the sea for fishing. Besides, they limit the quantity of fish caught each time that fleets go to the sea. […] Consequently, the quantity of fish that fishers catch expresses the idea that preservative practices are followed. This procedure contributes to promote high prices for sardine. So, this product become well valued and fishers may be satisfied…. Journal of Agriculture, Food & Environmental Science
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Fishing: Drama of the Commons Sardine Fishing in Portugal O 1'scos to fca tch ing g iven : c gg Two neighboring fishing producer’s organizations (POs) decide the catch of sardines among its members. 12 2 1 1 2 PO 1s cost of catching given 11 (, ) 22 Price on the local market: p cc Xcc c =+ The more on PO catches, the harder it becomes to catch fishes for the other.
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class 23 asym info monopoly post - Announcement Class 23...

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