Uncertainty and the pricing of exhaustible resources
Demand and reserve uncertainty are included in a simple model of an exhaustible resource market by allowing the demand function and the reserve level to fluctuate via continuous-time stochastic processes. Thus, producers always know current demand and reserves, but do not know what demand and...
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| Format: | Working Paper |
| Language: | en_US |
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MIT Energy Laboratory
2006
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| Online Access: | http://hdl.handle.net/1721.1/35223 |