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Dynamic Timing Decisions Under Uncertainty
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154 b
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This book deals with dynamic timing decisions under§uncertainty in the context of exhaustible resources.§Adopting the dynamic programming techniqueof 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 switchregimes is the main theme§throughout the book. The approach offered can be used to§study similar problems in industrial organization or dynamic§macroeconomics.
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