ABSTRACT
This essay provides an exposition of stationary general equilibrium in a two-commodity world where one of the commodities is produced from a common property replenishable resource such as an ocean fishery, hunting ground, or groundwater supply. The principal emphasis is on the derivation of the production transformation set and its properties since this is where the effect of common tenure is manifest. Two-commodity models have been employed by Scott and Southy (1970) in a static context and by Quirk and Smith (1970) and Plourde (1971) using a control theory formulation, but these studies do not provide a detailed examination of the production transformation set. Also, the present essay will treat the determination of the number of firms in each industry allowing an extension of partial equilibrium concepts to general equilibrium.
