Understanding Nonrenewable Resource Supply Behavior

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Science  25 Feb 1983:
Vol. 219, Issue 4587, pp. 927-932
DOI: 10.1126/science.219.4587.927

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Decisions concerned with finding, developing, and extracting nonrenewable resources are dynamically interrelated in complex ways. Economic theory provides a description of this process that yields useful insights, but there are gaps between theory and empirical applications that hinder our understanding of how supply responds to changes in economic incentives. Consequently, many questions concerning market efficiency as opposed to government intervention remain open.