Monopoly Extraction Of An Exhaustible Resource With Two Markets
|Presenting Author:||Carolyn Fischer (Resources for the Future)|
|Coauthor 1:||Ramanan Laxminarayan|
Although much has been written about the implications of monopoly power for the rate of extraction of natural resources, the specific case in which the resource can be sold in two markets with different elasticities of demand has escaped notice. This situation is particularly important in the case of many resources -- such as natural gas used for power generation and household heating, or antibiotics (where their effectiveness is a resource) used both as growth promoters in livestock and for treatment in humans -- and is one in which a monopolist is neither a friend of the social planner (as predicted by Stiglitz) nor a friend of the conservationist (as described by Solow).
|Link to paper:||http://weber.ucsd.edu/~carsonvs/papers/816.pdf|
|Session / Day / Time||14G / Thursday / 8:00 - 10:00 am|
Please use your browser's "back" button to get to the previous page.