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FURTHER RESULTS ON EQUILIBRIUM PATTERNS OF COMPETITION IN OCS LEASE SALES
Author(s) -
SMITH JAMES L.
Publication year - 1984
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1984.tb00674.x
Subject(s) - lease , bidding , petroleum , economics , submarine pipeline , competition (biology) , robustness (evolution) , microeconomics , competitive equilibrium , econometrics , engineering , geology , finance , paleontology , ecology , biochemistry , chemistry , geotechnical engineering , gene , biology
A prior model of competitive bidding for offshore petroleum leases is subjected to more extensive empirical testing based on underlying geological data prepared by the U.S. Geological Survey. The current results strongly reinforce the tentative conclusions advanced in the previous paper, and demonstrate the robustness of the model. In light of the current results, it seems very likely that participants in offshore lease sales behave as if their operations were constrained physically such that only a limited volume of petroleum reserves are pursued in any one sale.