Strong Time-Consistency in the Cartel-versus-Fringe Model

A.M. Groot, C.A.A.M. Withagen, A.J. de Zeeuw

Research output: Working paperDiscussion paperOther research output

386 Downloads (Pure)


In the seventies and eighties, the theory of exhaustible natural resources developed a branch, which was called the cartel-versus-fringe model, to characterize markets with one large coherent cartel and a big number of small suppliers named the fringe.It was considered appropriate to use the von Stackelberg solution concept but because solutions could only be derived in an open-loop framework time-inconsistency resulted.This paper solves time-inconsistency in the cartel-versus-fringe model and provides the feedback von Stackelberg equilibrium for all cost configurations.
Original languageEnglish
Place of PublicationTilburg
Number of pages32
Publication statusPublished - 1996

Publication series

NameCentER Discussion Paper


  • natural resources
  • cartels
  • game theory
  • consistency


Dive into the research topics of 'Strong Time-Consistency in the Cartel-versus-Fringe Model'. Together they form a unique fingerprint.

Cite this