Harstad, Bård - National Bureau of Economic Research (NBER) - 2011
purchase conservation, or the forest, from S? If this were an equilibrium, S would never consume, anticipating a higher price … strategies, implying that the good is consumed (or the forest is cut) at a positive rate. If conservation is more valuable, it is … patient, the forest disappears with probability one. A rental market has similar properties. By comparison, a rental market …