We introduce learning into a Hotelling model of a non-renewable resource market. Bycombining learning and scarcity we … add signi?cantly to the dynamics implied by learning and substantially enhance the volatility of commodity prices. In our … learning model we show how a self con?rming equilibrium exists but is not constant over time. As scarcity increases the SCE …

We introduce learning into a Hotelling model of a non-renewable resource market. By combining learning and scarcity we … add significantly to the dynamics implied by learning and substantially enhance the volatility of commodity prices. In our … learning model we show how a self confirming equilibrium exists but is not constant over time. As scarcity increases the SCE …

from the existing literature, which typically focuses on the learning of private agents during a disinflation. We build a …