Balikcioglu, Metin; Fackler, Paul L.; Pindyck, Robert S. - In: Resource and Energy Economics 33 (2011) 3, pp. 761-768
Two papers of (Pindyck, 2000) and (Pindyck, 2002) that modeled the control of stock pollutants as optimal stopping problems contained closed form solutions that are incorrect. This paper discusses a subtle error in the derivation and demonstrates how solutions to these and related problems can...