This note gives a simple, but useful characterization of optimism and pessimism represented by a convex and concave shift of probability weighting functions, and applies it to two comparative static analysis.

In this paper, it is shown that a wide range of comparative statics results from expected utility theory can be extended to generalized expected utility models using the tools of supermodularity theory.

The idea of using ?fat taxes? to curb obesity rates has been raised by many. In particular, the idea of taxing sugar-sweetened beverages (SSBs) has received considerable attention in the United States and has recently been discussed by President Obama. Rather less attention has been given to the...

The stabilization of global climate presents one of the most complex problems in public good provision the world has faced. Continuation of "business as usual" policies, leading to warming of more than 2 degrees over the next year, will produce significant damage to agricultural systems and...

In this article, we present one of the first real-world empirical applications of state-contingent production theory. Our state-contingent behavioral model allows us to analyze production under both inefficiency and uncertainty without regard to the nature of producer risk preferences. Using...

In this article we model production technology in a state-contingent framework. Our model analyzes production under uncertainty without being explicit about the nature of producer risk preferences. In our model producers’ risk preferences are captured by the risk-neutral probabilities they...

On 2 June 2009, the Queensland Government announced a programme of asset sales projected to realise $15 billion. In this article, the public case for privatisation put forward by the Queensland Government is shown to be wrong and, in important respects, deliberately misleading. It is argued...