The authors consider the competitive equilibrium of an economy with technological uncertainty in the production of a composite good and in the extraction of a nonrenewable natural resource. The familiar Hotelling-type rule takes the form of the intertemporal asset-pricing equation of portfolio...

The authors study optimal nonrenewable resource royalty contracts when the extracting agent has private information on costs. This is a dynamic incentive problem in which the repeated relationship between the principal and the agent is constrained by initial reserves. Commitment is limited to...

Price and quantity competition are compared in the dynamic game framework of a nonrenewable natural resource duopoly. It is shown that a price-decision-rule (quantity-decision-rule) strategy dominates, in terms of a higher present value of the initial resource stocks, if the resources are...