HALLER, HANS; PAVLOPOULOS, ANTHONY - In: Manchester School 74 (2006) 1, pp. 23-39
Suppose a prospective oil field is partitioned into a finite number of lots. Conventional wisdom suggests that failing to find oil on one lot is bad news regarding subsequent exploration of other lots, due to a 'common pool' effect. Here we identify situations where failing to find oil on a lot...