On the Ehrlich-Simon bet: Both were unskilled and Simon was lucky
In 1980, biologist Paul Ehrlich and economist Julian Simon entered into a bet over whether the real prices of five resources would increase or fall between 1980 and 1990. Because the real prices of the five resources declined, Simon won the bet. But Simon won, not because he was more skilled than Ehrlich, nor because he correctly predicted the changing absolute scarcity of the five relevant resources. Simon won because he was lucky. Resource prices reflect the relative scarcity of different resource types, not their absolute scarcity. Given the basis upon which Ehrlich and Simon entered the bet, both men revealed their lack of understanding of the relationship between absolute resource scarcity and resource prices. In the end, Simon was lucky because factors other than a rise in absolute scarcity had the greatest impact on resource prices between 1980 and 1990.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kiel, Katherine & Matheson, Victor & Golembiewski, Kevin, 2010.
"Luck or skill? An examination of the Ehrlich-Simon bet,"
Elsevier, vol. 69(7), pages 1365-1367, May.
- Katherine A. Kiel & Victor Matheson & Kevin Golembiewski, 2009. "Luck or Skill? An Examination of the Ehrlich - Simon Bet," Working Papers 0908, College of the Holy Cross, Department of Economics.
- Slade, Margaret E., 1982. "Trends in natural-resource commodity prices: An analysis of the time domain," Journal of Environmental Economics and Management, Elsevier, vol. 9(2), pages 122-137, June.
- Norgaard, Richard B., 1990. "Economic indicators of resource scarcity: A critical essay," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 19-25, July.
- Daly, Herman E., 1992. "Allocation, distribution, and scale: towards an economics that is efficient, just, and sustainable," Ecological Economics, Elsevier, vol. 6(3), pages 185-193, December.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:11:p:2045-2046. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.