We establish a general preference for price uncertainty by the price taking, risk neutral, nonrenewable resource extracting firm with orthodox convex extraction costs. Option prices for delivery of a ton at a particular date in the future exceed the expected dollar return from the purchase of...

We analyze the formation of a hierarchy of groups such as herds, members of a "rung" in a tennis ladder, students at a particular quality of college, or club members sharing a local public good. An individual is interested in maximizing her individual payoff which depends on a variable...

We amend the static model of industry structure in Dasgupta and Stiglitz to include external benefits from a firm's R&D. Now "the market" under invests in R&D relative to the social optimum. The work of Mansfield suggests such external benefits are pervasive.

In each period, we have an R&D race among N competitive R&D firms, each with probability π of discovering a successful new technique for producing an intermediate good used in producing the economy's final consumption good. The winner of a race earns a monopoly profit over a generally uncertain...

We take up a growth model with both skilled and unskilled labor, and a steady migration of some unskilled workers, who undertake apprenticing, to the skilled group of workers. Apprenticing involves a period of observing and thus labor output foregone. The time-out for observing represents a cost...

We set out an open, monocentric city with residential structures and reflect how changes to the amenity index affect the city. On the consumption side, an amenity is represented by an exogenous boost to the utility of a resident's current commodity bundle. The city's population, land rent and...

We establish that if rents from exhaustible resources are invested in reproducible capital and if the population growth rates equal the rate of capital augmenting technical change, then for general neoclassical production functions, per capita consumption remains constant. We establish our new...

With several identical deposits of an exhaustible non-reproducible resource, the working of a deposit entails a set-up cost but no other cost. The deposits must be extracted in strict sequence with jump discontinuities of marginal benefits at transition points. Moreover, the average rate of...

Beckmann's interaction model has each resident touching base in face-to-face activity with every other resident, per unit time, at the other's residence. We re-work his resulting "interaction city" with each resident "operating with" a Cobb-Douglas utility function. We then turn to a more...