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Joseph Stiglitz (1970), 'Increasing Risk: I. A Definition', Journal of Economic Theory, 2 (3), September, 225-43 -- 5. Paul A …), 'First Order Versus Second Order Risk Aversion', Journal of Economic Theory, 51 (1), June, 111-25 -- 31. Matthew Rabin (2000 …), 'Risk Aversion and Expected-Utility Theory, A Calibration Theorem' Econometrica, 68 (5), September, 1281-92 -- 32. Menahem E …
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We study the timing-of-extraction problem facing a decentralized mine owner when extraction entails environmental damage. As expected, when the environmental damage from mining is known, the socially optimal timing will depend on the magnitude of the damage relative to these costs in the rest of...
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This paper is concerned with the determination of the optimal time horizon for the cake-eating problem under uncertainty. It is shown that if the uncertain exhaustible resource stock is a discrete random variable admitting at most a finite number of values, the optimal planning horizon is...
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