# Cournotian dynamics of spatially distributed renewable resources

## TL;DR

This paper extends Cournot dynamics to spatially distributed renewable resources, showing how endogenous prices influence exploitation and convergence outcomes in both durable and non-durable cases.

## Contribution

It introduces a spatial Cournot model with endogenous prices for renewable resources, analyzing how competition impacts resource stocks and exploitation incentives.

## Key findings

- Endogenizing prices prevents full resource exploitation.
- Classical Cournot outcomes often prevail in spatial renewable resource models.
- Competition affects both resource stocks and temporal exploitation incentives.

## Abstract

We extend modern Walrasian economics, and in particular the results on Cournot convergence and dynamics, by focusing on renewable resources in a spatial setting. Building on the harvesting model of Behringer and Upmann (2014) we endogenize prices and investigate the two cases of durable and non-durable renewable commodities. We find that endogenizing prices is sufficient to prevent the full exploitation result and look at how competition affects not only the stock but also the temporal incentives for exploitation. We derive convergence results in static and dynamic settings which suggest that the classical Cournotian outcomes may prevail.