This paper studies a class of information aggregation models which we call “aggregation games.†It departs from the related literature in two main respects: information is aggregated by averaging rather than majority rule, and each player selects from a continuum of reports rather than...

We consider the impact of taxes on the quantity and quality produced by a competitive firm of goods, such as wine, for which market value accrues with age. Our analysis found the following: an increase in the volumetric retail tax collected at sale increases quality, so that the basic...

In a production process with a labor and a nonlabor input we show that the principals profits increase when she controls the nonlabor input. Furthermore output increases since the principal can allocate capital to help mitigate her information costs. However this mitigation of information costs...

This article provides a methodology to exactly calibrate land-constrained programming models of agricultural supply against supply elasticities using generalized constant-elasticity-of-substitution, crop-specific production functions. We formally derive the necessary and sufficient conditions...

When liability for environmental spills, product failures, or other types of accidents is imposed on firms with insufficient wealth, those firms may file for bankruptcy ---thereby becoming ''judgement proof''--- as soon as a major accident occurs. As a result, they are unlikely to choose...

Superfund cleanup has been extremely slow. Traditional analysis has centred around reducing the heavy negotiation and litigation to expedite the cleanup process. This paper investigates other factors which provide possible incentives for the PRPs to delay the cleanup, namely discounting, risk...