Equilibria in a competitive model arising from linear production situations with a common-pool resource

Abstract

In this paper we deal with linear production situations in which there is a limited common-pool resource, managed by an external agent. The profit that a producer, or a group of producers, can attain depends on the amount of common-pool resource obtained through a certain procedure. We contemplate a competitive process among the producers or groups of producers and study the corresponding non cooperative games, describing their (strict) Nash equilibria in pure strategies. It is shown that strict Nash equilibria form a subset of strong Nash equilibria, which in turn form a proper subset of Nash equilibria.