Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
986452 | Resources Policy | 2006 | 8 Pages |
Abstract
This paper studies the design of a mining concession contract as a multi-period adverse selection problem where production is the depletion of a non renewable resource. Compared with symmetric information, we show that overproduction is optimal in the terminal phase of the resource extraction program. Moreover, asymmetric information lengthens the contract duration but reduces the scarcity rent.
Keywords
Related Topics
Physical Sciences and Engineering
Earth and Planetary Sciences
Economic Geology
Authors
Nguyen Manh Hung, Jean-Christophe Poudou, Lionel Thomas,