NUMERICAL ANALYSIS AND SIMULATION OF RESOURCE‐EXPLORATION MODELS

ABSTRACT. In this paper, we examine models for exploration and consumption of resources. The fundamental feature of the models is the jump‐process nature of the exploration for and discovery of the resource. Several models have been proposed and analyzed in the literature. Here we provide numerical schemes, convergence properties, and some new models that provide risk‐averse policies to avoid depletion of the resource.