Monopoly extraction of an exhaustible resource with two markets

Carolyn Fischer, Ramanan Laxminarayan

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

Although much has been written about monopoly extraction of natural resources, the case of a resource being sold in two separate markets has escaped notice. We find that a monopolist facing two different iso-elastic demand schedules extracts more rapidly than the social planner, whether or not arbitrage prevents price discrimination between markets.

Original languageEnglish (US)
Pages (from-to)178-188
Number of pages11
JournalCanadian Journal of Economics
Volume37
Issue number1
DOIs
StatePublished - Feb 2004

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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