An Analysis of Alternative Bidding Systems for Leasing Offshore Oil

Douglas K. Reece

40 citations0/0 files storedThe Bell Journal of Economics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auction Theory and Applications Merger and Competition Analysis Law, Economics, and Judicial Systems

Abstract

This study utilizes a formal model of competitive bidding to analyze some alternative procedures for selling offshore oil leases. We assume that the population of leases to be sold contains tracts having both positive and negative true values and that firms are able to obtain informative, but highly uncertain, estimates of the true value of each tract. We derive firms' Nash equilibrium bidding strategies for bonus, profit-share, and a form of royalty bidding and then analyze the expected division of economic rent between buyer and seller for the three bidding systems.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 40 citations exist upstream.

References

1977A Bidding Model of Perfect Competition 1978Optimal Risk Sharing and the Leasing of Natural Resources, with Application to Oil and Gas Leasing on the Ocs 1978Competitive Bidding for Offshore Petroleum Leases

Cited by

1983Hedonic theory, bid rents, and willingness-to-pay: Some extensions of Ellickson's results 2007Auctions in Corporate Finance**We thank Parimal K. Bag, Espen Eckbo and Mike Fishman for comments and suggestions.1986Equilibrium properties of auctions and alternative procedures for allocating transferable permits 2004Promoting economy: electronic reverse auctions under the ec directives on public procurement

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.