Monopoly extraction of an exhaustible resource with two markets

Carolyn Fischer, Ramanan Laxminarayan

Research output: Contribution to JournalArticleAcademicpeer-review


Although much has been written about monopoly extraction of natural resources, the case of a resource being sold in two separate markets has escaped notice. We find that a monopolist facing two different iso-elastic demand schedules extracts more rapidly than the social planner, whether or not arbitrage prevents price discrimination between markets.

Original languageEnglish
Pages (from-to)178-188
Number of pages11
JournalCanadian Journal of Economics
Issue number1
Publication statusPublished - 1 Feb 2004

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