This paper presents a comprehensive economic framework for the conservation of biological diversity. This framework combines a simple model for valuing different sets of species with a decision theoretic model involving extinction probabilities to identify the optimal conservation strategy....

To allocate scarce resources to the conservation of biological diversity in an effective way, it is necessary to measure diversity. One argument in favor of species conservation is that species have an option value arising from their potential future use (e.g., in curing a disease). We use a...

In this paper, a two-stage model is presented in which firms chose market structure in stage one and play a Cournot game in the second stage. In a one-period game, if a single firm is given a choice in stage one, it will chose to from independent rival divisions rather than remained as a unified...

I analyze oligopoly equilibrium in a non-renewable resource market where firms can argue their initial resource endowment. I use the model to generate two testable implications. First, given the existing distribution of reserves across firms, firms with small reserves will extract a larger...

We analyze the welfare effects of horizontal mergers in the context of a Counot oligopoly model in which firms have different marginal costs of production. A merger may allow for a shift from less efficient more efficient producers (rationalization of production). A merger may increase social...

In this paper we analyze a model in which initially there is a single firm that harvests from a common property resource. The firm faces potential entry of a rival in the future. The costs of harvest from the resource is a function of the stock size. By drawing down the initial population, the...