We examine consistency with economic theory of markup decisions for a risk averse firm facing demand uncertainty. We derive testable comparative static results that describe the influence on the markup of expected demand, demand uncertainty, average variable costs and exogenous demand shifters....

Farmer's willingness to voluntarily reduce insecticide use is not considered when regulatory approaches toenvironmental protection are proposed. Regulations that require behavior that would voluntarily be undertaken are excessive and economically inefficient. Using survey data from a contingent...