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Leasing policies for the extractive resources

The Annals of Regional Science

By:
,
DOI: 10.1007/BF01303241

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Abstract

Much of the available analysis of policies for the disposal of publicly held resources is based on comparatively straightforward extensions of the neoclassical pricing and allocation theory. As such, these analyses have to a large extent not fully incorporated the fact that firms normally acquire rights to these resources in sealed tender markets. In this paper, a simple bidding model is used to show that the choice of disposal policies can influence the firm's bid and also the public revenues obtained from the sale of the resource. It is additionally shown that the implications of such policy choices are conditioned by the firm's attitudes towards risk. Finally, it is argued that a modification of existing prescriptions may be necessary if a more realistic specification of the disposal problem taking account of the sealed tender market in which rights are obtained, is considered. ?? 1976 Annals of Regional Science.

Additional Publication Details

Publication type:
Article
Publication Subtype:
Journal Article
Title:
Leasing policies for the extractive resources
Series title:
The Annals of Regional Science
DOI:
10.1007/BF01303241
Volume
10
Issue:
2
Year Published:
1976
Language:
English
Publisher:
Springer-Verlag
Larger Work Type:
Article
Larger Work Subtype:
Journal Article
First page:
36
Last page:
49