A model of pricing of natural-resource commodities that integrates financial and product markets is derived and tested. The model unifies two strands of the economic and financial literature: one that builds on the Hotelling model of pricing of exhaustible resources and the other that extends...

The paper tests Hotelling's prediction that scarcity rent for a non-renewable resource will rise at the rate of discount in a market equilibrium. We perform the test using data for old-growth timber, a resource that is effectively non-renewable. In contrast to previous studies, for this resource...

Firms in primary-metal industries often charge subcompetitive prices and, in periods of high demand, they may ration their customers. A model is developed to explain these empirical regularities. In the model, firms with market power are aware that the price they charge today affects their...

In this paper, I examine methods used to construct and estimate game-theoretic models of oligopolistic interactions, and I survey some of the empirical findings. Both static and dynamic games are covered. Static models provide useful summary statistics concerning the outcomes of oligopolistic...