Article ID Journal Published Year Pages File Type
986452 Resources Policy 2006 8 Pages PDF
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.

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Related Topics
Physical Sciences and Engineering Earth and Planetary Sciences Economic Geology
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