Say you have n extraction sites with constant but different marginal costs.
The asset prices grow with interest, supply equals demand and there is nortprofit. That's well and good, but if n>2 is not enough to determine asset prices and extraction schedules. I am missing something or is a "anything goes situation"?
Hotelling model with multiple extraction sites
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Yeah im pretty sure there are multiple equilibria.
A certain field can have an initial value so high that is never extracted and the economic interpretation of that would be that the individuals are using it as a medium of exchange or something, because of its scarcity.
But im not being able to find any reference about it, so who knows.