TITLE:
Theoretical Reserve Price in Forestry
AUTHORS:
Francis Didier Tatoutchoup
KEYWORDS:
Reserve Price, Auctions, Wicksell Rule, Optimal Forest Rotation, Autoregressive Process
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.4,
August
11,
2016
ABSTRACT: This article uses the forest management problem under uncertainty to
derive the optimal reservation price when a standing timber is to be auctioned.
Theoretically, the resulting optimal reservation price that considers the
harvesting decision is an extended version of Laffont and Maskin’s and Riley
and Samuelson’s reservation price, which is suboptimal in the forestry context.