Optimal trade policy in an uncertain world is examined. Decision-maker attitudes toward uncertainty are represented in terms of the <link rid="b16">Gilboa-Schmeidler (1989)</link> maximin expected-utility (MMEU) model. The central result is that in a two-country, general-equilibrium setting with both trading partners...

Optimal trade policy in an uncertain world is examined. Decision-maker attitudes toward uncertainty are represented in terms of the Gilboa-Schmeidler (1989) maximin expected-utility (MMEU) model. The central result is that in a two-country, general-equilibrium setting with both trading partners...

The paper examines principal-agent relationships in uncertain environments where beliefs of the contracting parties (the regulator and the firm) are represented by sets of probabilities. In addition to fully characterizing the first-best and the second-best solutions, we examine optimality of...

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, May 2007, Volume 89, Issue 2.

This paper considers the simple neoclassical economics of price gaps in the absence of income effects. Our guiding principle is that price gaps reflect a fundamental economic principle: buy low and sell high. It is demonstrated that neoclassical theory makes clear and economically testable...

We develop a model explaining the consolidation patterns in the agricultural biotechnology industry. Among different consolidation and cooperation mechanisms, we consider collaborative and licensing agreements, joint ventures, acquisitions, and exchanges of ownership and spin-offs. The key...

This papers analyzes efficient regulatory design of a polluting firm who has two kinds of private information about its production environment. First, the firm has better information than the regulator regarding technological possibilities for controlling pollution; and second, some aspects of...