Exploration decisions and firms in the mineral industries
April 1, 1981
The purpose of this paper is to demonstrate how physical characteristics of deposits and results of past exploration enter future exploration decisions. A proposed decision model is presented that is consistent with a set of primitive probabilistic assumptions associated with deposit size distributions and discoverability. Analysis of optimal field exploration strategy showed the likely firm responses to alternative exploration taxes and effects on the distribution of future discoveries. Examination of the probabilistic elements of the decision model indicates that changes in firm expectations associated with the distribution of deposits cannot be totally offset by changes in economic variables.
Citation Information
Publication Year | 1981 |
---|---|
Title | Exploration decisions and firms in the mineral industries |
DOI | 10.1016/0140-9883(81)90015-3 |
Authors | E. D. Attanasi |
Publication Type | Article |
Publication Subtype | Journal Article |
Series Title | Energy Economics |
Index ID | 70012157 |
Record Source | USGS Publications Warehouse |
USGS Organization | Eastern Energy Resources Science Center |