A typical model of investment under uncertainty, where firms pay an irreversible cost in order to produce, is studied. The analysis has a novel focus on the recipient of this payment, which is modeled as a firm or government that sells a resource (or a right) necessary for the production of the...

In Israel, the government currently implements various measures intended to reduce the amount of household waste sent to landfill. So far, however, these measures have resulted in only limited success. The commonly heard claim that municipalities prefer to continue sending waste to landfill...