A global asymmetric duopoly game of relatively scarce resources

Minooei Fard, B., Di Bartolomeo, G., & Semmler, W. (2026). A global asymmetric duopoly game of relatively scarce resources. Macroeconomic Dynamics 30 e3. 10.1017/S136510052510076X.

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Abstract

This study analyses the dynamics of the global rare earth element market, with a focus on China’s dominant role as the primary supplier, which is crucial for the energy transition and digitalization. Using a game-theoretic approach, the research examines a potential duopoly market structure that may emerge over time, as well as potential shifts in supply from China to other countries in this scenario. It considers China’s low marginal costs and factors such as resource extraction and discoveries. Additionally, the study examines the strategic market interactions, the role of technological advancements, and policy support in shaping market outcomes. The methodology assumes that agents have limited foresight and use a learned value function to strategically assess outcomes based on their own and others’ actions, while accounting for environmental constraints.

Item Type:	Article
Research Programs:	Economic Frontiers (EF)
Depositing User:	Luke Kirwan
Date Deposited:	12 Jan 2026 08:31
Last Modified:	12 Jan 2026 08:31
URI:	https://pure.iiasa.ac.at/21216

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