We study the stochastic effect of resource exploration in dynamic Cournot models of exhaustible resources, such as oil. We first treat the case of a monopolist who may undertake costly exploration to replenish his diminishing reserves. We then consider a stochastic game between such an...

We extend the dynamic Cournot model of Ludkovski and Sircar (2012) by considering stochastic demand. We analyze a duopoly between an exhaustible producer and a "green" competitor. Both producers dynamically make decisions regarding their production rates; in addition the exhaustible producer...

We explore optimal investment in Research and Development activities among producers in a competitive market. R&D effort is costly and results in discrete technological advances that gradually lower production costs. The aggregate cost profile is thus expressed as a stochastic multi-dimensional...