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TO SAMPLE OR NOT TO SAMPLE
Author(s) -
HALLER HANS,
PAVLOPOULOS ANTHONY
Publication year - 2006
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2006.00480.x
Subject(s) - sample (material) , econometrics , oil field , economics , field (mathematics) , biochemical engineering , mathematics , petroleum engineering , engineering , chemistry , chromatography , pure mathematics
Suppose a prospective oil field is partitioned into a finite number of lots. Conventional wisdom suggests that failing to find oil on one lot is bad news regarding subsequent exploration of other lots, due to a ‘common pool’ effect. Here we identify situations where failing to find oil on a lot may be good news. Similar considerations may be relevant in the testing of chemical substances for a specific pharmaceutical use.