ABSTRACT
This paper will expand the theory of common-property resources as developed for a commercial fishing industry by S. Gordon [4] , C. Plourde [9] and J. Quirk and V. Smith [12]. A general equilibrium model of a two-good economy is developed. In this economy one of the two consumption goods is produced using a common-property natural resource. As in Quirk and Smith [12], the problem of optimal exploitation of this common-property natural resource is expressed as a control problem. This paper is able to achieve specific results by assuming restrictive properties on the functions describing biological growth, production of resource product and social utility.
