Mining and Incentive Concession Contracts
This paper studies the design of a mining concession contract as a multi-period autoselection problem where production is the depletion of a non renewable resource. As compared to symmetric information, we show that overproduction (resp. underproduction) is optimal in the initial phase (resp. terminal phase) of the resource extraction program. Also, asymmetric information lengthens the contract duration but reduces the scarcity rent. Finally, when there are several agents competing for contract bid, we show that optimal auctioning could be used to award the concession, assigning the lowest cost agent to carry out the extraction.
|Date of creation:||2003|
|Contact details of provider:|| Postal: LASER, Faculté d'Economie, Avenue Raymond Dugrand, CS 79606, 34960 MONTPELLIER Cedex 2, France|
Phone: +33 411757107
Fax: +33 411757107
Web page: http://www.laser.univ-montp1.fr
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:mop:lasrwp:2003.08. 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: (Jean-Christophe POUDOU)
If references are entirely missing, you can add them using this form.