Monopoly exploitation of an exhaustible resource

Journal Article (Journal Article)

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. © 1976.

Full Text

Duke Authors

Cited Authors

  • Lewis, TR

Published Date

  • January 1, 1976

Published In

Volume / Issue

  • 3 / 3

Start / End Page

  • 198 - 204

Electronic International Standard Serial Number (EISSN)

  • 1096-0449

International Standard Serial Number (ISSN)

  • 0095-0696

Digital Object Identifier (DOI)

  • 10.1016/0095-0696(76)90019-X

Citation Source

  • Scopus