The use by farmers of futures contracts and other hedging instruments has been observed to be low in many situations, and this has sometimes seemed to be considered surprising or even mysterious. We propose that it is, in fact, readily understandable and consistent with rational decision making....

Survey data are used to examine the determinants of a "social clause" in international trade negotiations. Proponents of such a clause argue that the inclusion of labor laws, environmental impacts, and other social issues in international trade negotiations would ensure fair competition, an...