The fleet replacement problem of a profit-maximizing manager is examined using an optimal control model that captures both utilization and replacement decisions. Conditions for optimal utilization of each vessel in the fleet and optimal vessel acquisition and retirement strategies are discussed....

Recent changes in the US liability regime for oil pollution damage have intensified a policy debate about environmental liability limits. Economic theory suggests that some type of limit may be needed under certain conditions, and that such a limit should be set so that the marginal social...