Preference for output price uncertainty by the non-renewable resource extracting firm

Hartwick, John M.John M.HartwickProf. YEUNG Wing Kay, DavidDavidProf. YEUNG Wing Kay2021-02-262021-02-261985Econmics Letters, 1985, vol. 19(1), pp. 85-89.0165-1765http://hdl.handle.net/20.500.11861/6445We establish a general preference for price uncertainty by the price-taking, risk-neutral, non-renewable resource extracting firm with orthodox convex extraction costs. We prove that the relevant value function for profits over an interval is convex in output price.enPreference for output price uncertainty by the non-renewable resource extracting firmPeer Reviewed Journal Article10.1016/0165-1765(85)90109-0