We investigate the effects of asymmetric per-unit pollution tax rates in two countries on a firm's choice of location for its manufacturing facilities, local and global environmental damage, and social welfare. The novelty of our approach is that we consider a manufacturer which offers products...

This paper examines the interdependence between a firm's moral hazard problem and its roles as a buyer of inputs and seller of final products. We demonstrate that to maximize profit a firm needs to adapt incentive contracts to variations in the competitive environment of the supplier market....

In this paper we study the behavior of optimal paths in dynamic programming models with a strictly convex return function. Such a model has been investigated in Dawid and Kopel (1997) who assume that the growth of a renewable resource is governed by a piecewise linear function. We prove that in...