@article{Fraser:123804,
      recid = {123804},
      author = {Fraser, Rob W. and Rygnestad, Hild},
      title = {Do Royalties: “have a disincentive effect on production"?},
      address = {1999},
      number = {410-2016-25582},
      pages = {30},
      year = {1999},
      abstract = {This paper analyses the impact of royalties in the context  of a bilateral monopoly bargaining
process. It is shown  that the bilateral monopoly model is characterised by two  distinct forms
which are distinguished by the shape of the  seller’s marginal cost function, and that the view
that  royalties have a disincentive effect on production is  unfounded for one of these forms. It
is argued that the  forms of bilateral monopoly can be differentiated by  identifying the
direction of the observed correlation  between movements in traded prices and quantities.
This  proposal is investigated in the context of the Australian  iron ore and coal industries, and
it is suggested that, in  the case of iron ore, royalties do not have a disincentive  effect on
production.},
      url = {http://ageconsearch.umn.edu/record/123804},
      doi = {https://doi.org/10.22004/ag.econ.123804},
}