Gerlagh, Reyer; Liski, Matti - In: Journal of Economic Theory 146 (2011) 2, pp. 699-727
We consider a situation where an exhaustible-resource seller faces demand from a buyer who has a substitute but there is a time-to-build delay for the substitute. We find that in this simple framework the basic implications of the Hotelling model (1931) are reversed: over time the stock declines...