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Ore money ore problems: A resource extraction game

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  • Sarah Jacobson

Abstract

The economic theory of natural resource exploitation predicts that scarcity crises will not arise because forward-looking resource owners will smooth their extraction over time to maximize their profits. The model providing this result can seem opaque and technical to students, but its intuition can be learned from experience. The author shares a game that provides that experience. Participants play the role of mine owners who must decide how much to extract in each of two periods. In addition to showing how price signals through markets can prevent sudden increases in scarcity, the game also provides lessons about intertemporal choice, market power, information, and property rights. The author provides all materials needed to play the game as is or to customize it for alternative learning outcomes.

Suggested Citation

  • Sarah Jacobson, 2023. "Ore money ore problems: A resource extraction game," The Journal of Economic Education, Taylor & Francis Journals, vol. 54(2), pages 158-176, April.
    • Handle: RePEc:taf:jeduce:v:54:y:2023:i:2:p:158-176
    DOI: 10.1080/00220485.2023.2171521
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. I ran Sarah Jacobson's "Ore Money Ore Problems" resource extraction game in class yesterday @SarahJacobsonEc
      by John Whitehead in Environmental Economics on 2023-04-05 08:15:00

    More about this item

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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