Exploration of an exhaustible resource with cost recovery under asymmetric information about cost is modeled and analyzed employing Principal-Agent theory. Allocation of lower than full information level of effort for the high-cost firms is found socially optimal. However, distortion is less in...

Option contracts for water are emerging in some U.S. states as institutional and legal modifications allow water users to devise new mechanisms to increase reliability of water supply in dry years. Option contracts for water, though, are structurally distinct from financial derivatives and often...

Production data provided by commercial producers of grain sorghum is used to estimate response functions for three alternative management decision models. The evaluation of yield to the total water availability, irrigation, and water application as a percent of potential evapotranspiration. The...

This paper develops a single-season dynamic game between fishermen and regulators. Fishermen maximize the NPV of profits by their location choice in a system with congestion, adjustment costs, and adaptive, quota-driven, site closures. Simulation results reveal feedbacks between site-choice and...