کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
985500 | 934619 | 2008 | 27 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: An ‘oil’igopoly theory of exploration An ‘oil’igopoly theory of exploration](/preview/png/985500.png)
This paper develops a theory of ‘oil’igopoly exploration of an exhaustible resource. Strategic exploration and production are jointly derived in a three period subgame perfect equilibrium. While the ‘oil’igopoly theory of exploration shares many features with non-strategic models of exploration and production, there is one important difference. The ‘oil’igopoly theory of exploration predicts that firms who exhaust their proved reserves before they can convert their unproved reserves into proved reserves have an incentive to over-explore, relative to the Nash equilibrium level of exploration. A simple empirical prediction is that firms holding smaller proved reserves should be observed doing more exploration. This prediction is consistent with country-level production and reserve data in the post-World War II era.
Journal: Resource and Energy Economics - Volume 30, Issue 3, August 2008, Pages 428–454