We model the area allocation decision problem for a fixed size crop farm under random yields and prices for a risk-averse farmer. We assume that in the short run, the variable input expenses are fixed per hectare and per crop (an assumption that is motivated by our data). Therefore the cost...

Dutch coastal land markets are characterized by high amenity values but are threatened by potential coastal hazards, leading to high potential damage costs from flooding. Yet, Dutch residents generally perceive low or no flood risk. Using an agent-based land market model and Dutch survey data on...