On equilibrium in resource markets with scale economies and stochastic prices
I consider a non-renewable resource market where extraction costs are non-convex and market price is subject to stochastic shocks. While competitive equilibrium cannot exist if costs are non-convex and demand is deterministic, equilibrium can be supported in the context of stochastic demand. The cru...
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| Format: | Working paper |
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University of Oxford
2011
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