There is some debate about whether firms advertise too much or too little. We present a simple model to examine the incentives of a firm to advertise, and distinguish between the market-expansion effect and the business-stealing effect of advertising. Firms advertise homogeneous products (beef)...

This paper estimates the deadweight loss associated with not failing an optimal number of students. We find that this loss ranges between $3,200 and $4,600 per student over the student's four-year undergraduate career. One possible ramification of adopting a more stringent student-failure policy...

Statistical discrimination occurs when distinctions between demographic groups are made on the basis of real or imagined statistical distinctions between the groups. While such discrimination is legal in some cases (e.g., insurance markets), it is illegal and/or controversial in others (e.g.,...

Forest management around the globe has been discussed and emphasized as one of the practical environmental protection policies. The Kyoto protocol proposed that promotion of sustainable forest management through afforestation and reforestation will increase the potential carbon sink of forest...

We first review the literature pertaining to the protection of the modern sector in developing countries (DCs). We then discuss the nexuses between protection, economic dualism, and optimal environmental policy in DCs. Next, in the theoretical part of the paper, we construct a dynamic model of...

As traditional methods of municipal solid waste management (MSWM) become increasingly expensive due to increased regulation, many local governments are considering cooperation as a waste management strategy. A theoretical model is used to specify a partial observability probability model in...

In this paper we discuss the costate variable in a stochastic optimal control model of a renewable natural resource, which we call a fishery. The role of the costate variable in deterministic control models has been discussed extensively in the literature. See, for example, Lyon (1999), Clark...

This article examines the incentive effects of final-offer arbitration (FOA) in the presence of optimistic disputants. Common disputant expectations about the likely arbitrator settlement preferences are not a necessary condition for equilibrium final offers. It is shown that equilibrium final...

Results of a postal survey of participants in the 1997 central and lower Cook Inlet saltwater halibut and salmon sport fisheries are reported and compared with the results of the 1997 Alaska Department of Fish and Game (ADF&G) statewide sportfishing harvest survey and the 1998 ADF&G saltwater...