Discussion on shale gas production sustainability raises the question of shale gas well profitability. The study presents a well economics model incorporating key geologic and production features of shale gas. The model is used to demonstrate analytically how profitability of a well may change...

We evaluate the economics of drilling new wells in the Barnett Shale, Fort Worth Basin, Texas. The analysis is the most granular public study to date because it is based on 10 productivity tiers and it treats low and high Btu (British thermal unit) segments of the play differently. The study is...

We consider a market in which domestic buyers negotiate contracts with foreign sellers, and explore how trade quotas can help to increase the buyers' countervailing power. We use the Shapley value to describe bargaining power and the distribution of the trade surplus in such a bilateral...

In most cases rent control covers only a part of the housing stock. This note provides a simple analysis of the impact which rent control and non-price rationing exert on the rent in the free sector. It is shown that, depending on the rationing mechanism, rents in the free sector can be higher...

We analyze how a firm might protect quasirents in an environment of imperfect capital markets, where switching lenders is costly to the borrower, and contracts are incomplete. As switching costs make the firm vulnerable to ex post exploitation, it may want to diversify lending. Multiple-source...