Theoretical Analysis on Sustainability of Resource Economy subject to Discrete Type Uncertainty

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Consider an economy where individuals are producing single commodity for their consumption and investment to augment physical capital by combining private capital and international common natural resource such as high sea fishery and clean atmosphere with constant temperature. The resource endowment is subject to sudden discontinuous changes due to drilling technology innovation or groundwater infiltration. We analyzed whether the resource proprietors shall cooperate for their economic activity or seek for their individual purposes in order to raise the sustainability of this economy and found that the cooperative activity is better than the other.