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Leasing policies for the extractive resources

January 1, 1976

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.


Publication Year 1976
Title Leasing policies for the extractive resources
DOI 10.1007/BF01303241
Authors E.D. Attanasi, S.R. Johnson
Publication Type Article
Publication Subtype Journal Article
Series Title The Annals of Regional Science
Index ID 70001165
Record Source USGS Publications Warehouse
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