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Extracting Information or Resource ? The Hotelling Rule Revisited under Asym- metric Information

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  • David Martimort

    (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Jérôme Pouyet

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique)

  • Francesco Ricci

    () (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier - UM3 - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)

Abstract

A concessionaire has private information on the initial stock of resource. A "virtual Hotelling rule" describes how the resource price evolves over time and how extraction costs are compounded with information costs along the optimal extraction path. Fields which are heterogeneous in terms of their initial stocks follow different extraction paths. Resource might be left unexploited in the long run as a way to foster incentives. The optimal contract may sometimes be implemented through royalties and license fees. With a market of concessionaires, asymmetric information leads to a "virtual Herfindahl principle" and to another form of heterogeneity across active concessionaires.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David Martimort & Jérôme Pouyet & Francesco Ricci, 2018. "Extracting Information or Resource ? The Hotelling Rule Revisited under Asym- metric Information," Post-Print halshs-01631594, HAL.
  • Handle: RePEc:hal:journl:halshs-01631594
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01631594
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    References listed on IDEAS

    as
    1. Bergemann, Dirk & Pavan, Alessandro, 2015. "Introduction to Symposium on Dynamic Contracts and Mechanism Design," Journal of Economic Theory, Elsevier, vol. 159(PB), pages 679-701.
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    6. David Martimort & Jerome Pouyet & Francesco Ricci, 2018. "Contracts for the Management of a Non-Renewable Resource under Asymmetric Information and Structural Price Breaks," Annals of Economics and Statistics, GENES, issue 132, pages 81-103.
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    1. repec:adr:anecst:y:2018:i:132:p:81-103 is not listed on IDEAS
    2. David Martimort & Jerome Pouyet & Francesco Ricci, 2018. "Contracts for the Management of a Non-Renewable Resource under Asymmetric Information and Structural Price Breaks," Annals of Economics and Statistics, GENES, issue 132, pages 81-103.

    More about this item

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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