Author(s)

Francis Didier Tatoutchoup

Department of Economics, Université de Moncton, Moncton, Canada.

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.

Reserve Price, Auctions, Wicksell Rule, Optimal Forest Rotation, Autoregressive Process

Tatoutchoup, F. (2016) Theoretical Reserve Price in Forestry. Theoretical Economics Letters, 6, 761-767. doi: 10.4236/tel.2016.64080.