Cost differences among firms reshape equilibrium in resource exploitation game.
The article explores how differences in costs among companies sharing a natural resource can change the outcomes of their competition. By studying a scenario where firms both sell the resource and use it, researchers found that even small cost variations can lead to significant changes in equilibrium strategies. Specifically, a balanced strategy seen with equal costs becomes unsustainable when costs differ. The study identifies new equilibrium patterns that emerge in this asymmetric cost scenario.