Weak property rights encourage faster extraction than would otherwise maximize the long-term stream of profits.

Weak Property Rights

A situation where property rights are not fully enforced or clearly defined, leading to uncertainty and potential inefficiency in economic transactions.

Extraction

The process of removing or obtaining a resource from its source or original location, typically used in the context of natural resources.

Long-Term Stream

Long-Term Stream refers to a continuous process or sequence of events that unfolds over an extended period, often in the context of planning or investment.