Diffusion Approximation in Arrow's Model of Exhaustable Resources.
STANFORD UNIV CA INST FOR MATHEMATICAL STUDIES IN THE SOCIAL SCIENCES
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What we shall call Arrows Model for resource exploration and use under uncertainty was first formulated by Arrow 1977 and analyzed by Arrow and Chang 1978. This model proved to be very successful and stimulated a lot of research. The purpose of this paper is to bring to a common denominator the results of previous studies and to introduce a new diffusion model approach to the same problem. The problem is posed roughly as follows. Author
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