On the effects of a common-pool resource on cooperation among firms with linear technologies

Abstract

In this paper we study the effect that the external management of a limited (natural) resource such as carbon dioxide or water quotas has on the behaviour of firms in a given sector. To do this, we choose a model in which all firms have the same technology and this is lineal. In the analysis of the problem games in partition function form arise in a natural way. It is proved, under certain conditions, that stable allocations exist in both cases with certainty and uncertainty.