Abstract Regulation often takes the form of a standard that can be met through the implementation of any of a number of different policies. This paper examines how the authority to set the standard and the authority to choose the combination of policies to meet the standard should be allocated...

This paper uses a structural econometric model to analyze the investment timing game in offshore petroleum production that ensues on wildcat tracts in U.S. federal lands off the Gulf of Mexico. When individual petroleum-producing firms make their exploration and development investment timing...

We investigate the behavior of farmers who share an underground aquifer. In the case where seepage may occur the resource is nonexclusive, giving rise to a spatial externality whereby pumping by one user affects others nearby. Theoretically, these externalities are potentially important causes...

This paper uses spatial econometrics to analyze air pollution externalities. State-by-state source-receptor transfer coefficients that can be used as a basis for a location-differentiated permit system are estimated. Results affirm the importance of regional transport in determin-ing local ozone...

Firms often lack knowledge of the nature of the uncertainty they or their opponents face and use heuristics or approximations to determine their strategy. We define and analyze one type of “heuristic strategy”, in which firms choose strategies based on the expectation of their opponents’...

When individual petroleum-producing firms make their exploration and development investment timing decisions, positive information externalities and negative extraction externalities may lead them to interact strategically with their neighbors. This paper examines whether these inefficient...

Encouraging the use of more efficient irrigation technology is often viewed as an effective, politically feasible method to reduce the consumptive use of water for agricultural production. Despite its pervasive recommendation, it is not clear that increasing irrigation efficiency will lead to...

We model the dynamically optimal oil production on Iran’s offshore Soroosh and Nowrooz fields, which have been developed by Shell Exploration through a buy-back service contract. In particular, we examine the National Iranian Oil Company’s (NIOC) actual and contractual oil production...

This paper estimates the price and income elasticities of demand for gasoline in China. Our estimates of the intermediate-run price elasticity of gasoline demand range between −0.497 and −0.196, and our estimates of the intermediate-run income elasticity of gasoline demand range between 1.01...

Owing to cognitive costs, firms may choose strategies using a heuristic based on the expectation of their opponents’ private information rather than using the full information about the distribution of that private information. We find that the degree to which the heuristic and the Bayesian,...