Despite discussions about the relationship between returns to scale and economies of scale under assumptions of constant and nonconstant input prices, mistakes continue to be made in textbooks on these issues. This article demonstrates the pointwise relation between returns to scale and...

This paper considers decision-making in the presence of two additive risk sources, with no restrictions on the relation between the two risks. A utility function is said to exhibit broad DARA if and only if a rise in wealth always decreases the magnitude of the risk premium for one of the risks...

Costs and benefits of the testing protocol for screening donated blood for the HIV-1 virus are evaluated. Estimates are made of the number of HIV-1 infections and cases of AIDS prevented in a year by blood testing, as well as the costs of providing this risk reduction. The risk reduction...