Monopoly Extraction of a Durable Non-renewable Resource: Failure of the Coase Conjecture.

The author studies a perfect-information, rational expectations Markov equilibrium for the situation where a monopolist extracts a nonrenewable resource that is converted to a durable good. Even if short-run extraction costs are constant, the Coase Conjectur e fails, provided that the depreciation rate of the durable good is positive. Copyright 1993 by The London School of Economics and Political Science.

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Year of publication:	1993
Authors:	Karp, Larry S
Published in:	Economica. - London School of Economics (LSE). - Vol. 60.1993, 237, p. 1-11
Publisher:	London School of Economics (LSE)

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005195364