This study presents a three-stage game demonstrating how consumer demands for products and trees and net-zero emission requirements can affect a firm's incentive to undertake carbon capture, utilization, and storage technology (CCUS) efforts. On the policy front, the regulator sets a combination...

This study presents a three-stage game demonstrating how consumer demands for products and trees and net-zero emission requirements can affect a firm's incentive to undertake carbon capture, utilization, and storage technology (CCUS) efforts. On the policy front, the regulator sets a combination...

We consider the problem of valuing inputs in a production environment in which input supply is uncertain. Inputs can be workers in a firm, risk factors for a disease, securities in a financial market, or nodes in a networked economy. Each input takes its values from a finite set, and uncertainty...

We study the Shapley wage function, a wage scheme in which a worker's pay depends both on the number of hours worked and on the output of the firm. We then provide a way to measure the distance of an arbitrary wage scheme to this function in limited datasets. In particular, for a fixed...

We examine whether owners' decisions to delegate responsibilities to overconfident managers improve welfare. We develop a duopoly model with product differentiation, where firms compete in research and development (R&D) and output . Before firms compete, each owner makes a strategic decision...

We derive Bertrand and Cournot equilibria in a differentiated duopoly in which each firm hires a manager to undertake research and development (R&D) and production decisions. We show that manager overconfidence and over-investment occur in each market competition. Furthermore, the Cournot game...

The unique properties of the Shapley value-efficiency, equal treatment of identical input factors, and marginality{have made it an appealing solution concept in various classes of problems. It is however recognized that the pay schemes utilized in many real-life situations generally depart from...

We develop a model of optimal lockdown policy for a social planner who balances population health with short-term wealth accumulation. The unique solution depends on tolerable infection incidence and social network structure. We then use unique data on nursing home networks in the United States...