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....

An indirect utility model is employed for measuring farmers willingness to voluntarily accept yield losses for a reduction in environmental risk by decreasing pesticide use. Results support the hypothesis that farmers have self-described risk perceptions that enable them to make assessments of...

Peanut and corn are two major crops in the tri-state area of the Southeast US, an area encompassing North Florida, Southwest Georgia, and Southeast Alabama. Sharecroppers in this region apply higher amount of input in crop production than the average farmers. We analyzed the behavior of...

We investigate the objectives of agricultural bank managers and their impacts on bank efficiency. If managers are non-neutral toward risk, then banks may appear inefficient when they are not. We find non-neutrality toward risk and efficiency gains due to firm size, loan shares, asset shares, and...