Abstract

A modest modification of the standard assumptions of storage models results in a new price process distinct from those typically associated with agricultural or exhaustible resources. In this model, there is a positive probability of minimum output and consumption price is infinite at minimum cost. It is proved that price, consumption, storage, and available supply each have a unique continuous invariant limiting distribution which is a global attractor, and in which, almost surely, each respective variable is positive and finite. The mean of the invariant distribution is infinite.