Strategic resource extraction, capital accumulation and overlapping generations

The standard resource extraction framework assumes infinitely lived agents and yields an overfishing result. For some applications, a finite time horizon may be more appropriate. A direct extension of the Levhari–Mirman model to overlapping generations yields an extreme overfishing result. Alternatively, we assume young and old specialize, and respectively fish and supply capital. In this model, under some circumstances there may well be under-utilization of natural resources. However, for a given production technology, if there are a sufficiently large number of agents, overfishing always results.