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Monopoly exploitation of an exhaustible resource

Journal Article · · J. Environ. Econ. Manage.; (United States)
The popular notion that a monopolist will exhaust a nonrenewable natural resource at a slower than socially optimal rate is examined. Contrary to the prevailing belief, instances do exist for which the monopolist uses the resource faster than the social maximizer. This is demonstrated first by finding conditions for which the expected result--a monopoly rate which is slower than optimal--will always hold, and second, by showing that for situations where these conditions are violated the result may be reversed.
Research Organization:
California Inst. of Tech., Pasadena
OSTI ID:
7337090
Journal Information:
J. Environ. Econ. Manage.; (United States), Journal Name: J. Environ. Econ. Manage.; (United States) Vol. 3:3; ISSN JEEMD
Country of Publication:
United States
Language:
English

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