Accurate weather forecasts have substantial economic value. We examine the provision of accurate forecasts both theoretically and empirically. Theoretically, we use a simple Neo-Hotelling model. In that model, the public forecaster, the National Weather Service (NWS), tries to achieve...

The value of accurate weather forecast information is substantial. In this paper we examine competition among forecast providers and its implications for the quality of forecasts. A simple economic model shows that an economic bias geographical inequality in forecast accuracy arises due to the...