A theoretical model with nonlinear discarding costs is constructed to describe highgrading in a fishery with an Individual Transferable Quota (ITQ) program. The model shows that ITQs provide incentives to discard fish when the hold capacity of the vessel is nonbinding. An empirical model is...

We develop a theoretical model that is capable of explaining the existence of sustainable common pool resource equilibria in the absence of external regulation. We combine ideas from the literature on social norms in an iterative game theory framework to establish the existence of multiple...

In this paper we price a precipitation option based on empirical weather data from Germany using different pricing methods, among them the burn analysis, index value simulation and daily simulation. For that purpose we develop a daily precipitation model. Moreover, a decorrelation analysis is...

This paper focuses on the interactions between local communities having at least some degree of informal claims over natural resources and external agents, particularly firms interested in commercial resource exploitation. The paper makes three contributions to the existing literature. First,...

A wide variety of insurance products is available to agricultural producers to insure against yield or price risks in the markets for the raw commodities they produce. Value-added enterprises, such as ethanol production, have been expanding over the last decade. This paper outlines the...

Replaced with revised version of paper 12/06/06.

Recent innovations in energy markets suggest the possibility of addressing agricultural risk factors by issuing derivatives on weather elements. Such instruments appear particularly attractive, as asymmetric information and loss adjustment issues do not affect them. The paper first describes the...

In this paper, distribution and welfare effects of changes in block price systems are evaluated. A method is discussed to determine, for a Marshallian demand function, equivalent variation in case of a block price system. The method is applied to analyze welfare and distribution effects of...

Paper replaced with revised version 02/06/09.

The Four Rivers lottery run by the National Forest Service distributes the opportunity to raft four sections of rivers in Idaho through a non-transferable lottery. The restriction of trade and focus on equity in distribution creates a deadweight loss in total surplus compared with a market or...