Experimental evidence indicates that non-monetary considerations influence subjects’ allocation behavior. We investigate the impact of a multigeneration setup on allocation behavior. We modify the traditional dictator game by introducing 3 generations A, B and C. A takes an arbitrary share of a pie and passes the rest to B. B divides the rest of the pie between her and C. We find that this inte...

We derive a general framework for cost-benefit analysis and social discounting in a setting with intertemporally dependent preferences. Here, the marginal contribution of an additional unit of consumption in some period depends on what is consumed in the other periods. We use a simple model of history dependent preferences to analyze how habit formation affects the social rate of discount. Gett...

It has been long recognized that an exhaustible-resource monopsonist faces a commitment problem similar to that of a durable-good monopolist. Indeed, Hörner and Kamien (2004) demonstrate that the two problems are formally equivalent under full commitment. We show that there is no such equivalence in the absence of commitment. The existence of a choke price at which the monopsonist adopts the su...

The exhaustible-resource monopsony problem provides a basis for understanding the dynamic relationship between resource importers and suppliers. We find that the mere presence of a substitute supply creates a time-inconsistency problem for the monopsonist. When the buyer can commit to delaying the arrival of the substitute, he obtains a substantial reduction in resource prices but not enough as...

Although ecologists have long recognized the salience of persistence in determining the static and the dynamic behavior of ecological systems, it is only very recently that economists have begun to study this concept in relation to the use of services that are provided by jointly determined ecological-economic systems (ecosystems). As such, there are very few studies of ecosystems that explicit...

A time series is estimated of in-ground prices of U.S. oil and natural gas reserve prices for the period 1982–2003, usingmarket transaction data. Reserves sold are considered as proved; errors in this respectmay affect estimates, in either direction. The data are also used to examine the impact of reserve status, production rate, andwell head prices, on reserve prices. Both oil and gas current ...

In this paper we present empirical facts on oil exploitation and a model that can replicate some of these facts. In particular, we show that the time path of the oil price, on the one hand, and the extraction and discovery rate, on the other hand, seem to follow a U-shaped and an inverted U-shaped relationship, respectively, which is confirmed by simple non-parametric estimations. Next, we pres...