We compare two estimates of benefits arising from the construction of new bridges in south-west Norway. One estimate comes from a hedonic property value model. Rather than follow an approach which is strictly theoretically correct, we adopt Rosen’s simple first-stage approach. To investigate...

A worker might respond to an unfortunate local labour market situation by commuting or migrating to a zone with better prospects. This decision depends on the labour market accessibility of the worker’s current residential location. A spatial equilibrium model is applied to analyse the...

In this paper we suggest a microeconomic model for how commuting flows relate to traveling distance in a two-region system. Commuting is the preferred choice of a worker whenever he can obtain an increase in wages greater than the cost of commuting. Our framework is based on an approach where...

Traditional cost-benefit models of investments in road infrastructure are often based on demand curves assuming a given spatial distribution of jobs and households. We first use numerical experiments based on a spatial general equilibrium model to illustrate how this potentially introduces a...

In this paper we consider the newsvendor model with real options under discrete demand. We consider a mixed contract where the retailer can order a combination of q units subject to the conditions in a classical newsvendor contract and Q real options on the same items. We provide a closed form...

In this paper we consider the transfer of risk in a newsvendor model with discrete demand. We view the newsvendor model as a leader/follower problem where the manufacturer (leader) decides the wholesale price and the retailer (follower) decides the quantity ordered. Taking a Pareto-optimal...