Dynamic Timing Decisions Under Uncertainty

This book deals with dynamic timing decisions under uncertainty in the context of exhaustible resources. Adopting the dynamic programming technique of decomposing a large and complex problem into smaller and simpler ones, the book offers a unified treatment of the important subjects of exploration and technological innovation in the economics of exhaustible resources. These processes generate the dynamics of an economic system and might induce this system to switch from one dynamic regime to another. The question of how and when a policy maker should switch regimes is the main theme throughout the book. The approach offered can be used to study similar problems in industrial organization or dynamic macroeconomics.