Given self-protection from an undesirable environmental externality, we examine, under several conditions, the efficiency properties of cooperative and noncooperative behavior. We demonstrate that if self-protection can transfer the externality to another agent, then noncooperative behavior will...

A model of endogenous risk provides a foundation to study a parent’s child care decisions when the child could be exposed to an environmental hazard (e.g., toxic substance, foodborne pathogen). The parent invests in childcare quality and quantity to reduce the likelihood of a hazard exposure...

This paper incorporates an ecosystem model into a model of a simple economy. The decisionmaking agents in the ecosystem are individual organisms aggregated to the species level. A species may provide utility directly to humans, or it may provide utility indirectly because it is used either as a...

The paper develops a model that allows the estimation of parent’s valuation of own and child health, in an endogenous risk framework, where parents can employ multiple activities to protect themselves and their children from a health risk. These risk-reducing activities may differ in their...

In the lab, we examine the effectiveness of two land use conservation policies: a tradable set aside requirements (TSARs), and the TSARs combined with an agglomeration bonus. Evaluated by bioeconomic efficiency, our experimental results suggest: 1) TSARs is a cost-effective land conservation...

The increasing use of the Internet creates a need to manage traffic while preserving equal treatment of content. We estimate demand for residential broadband, using high-frequency data from subscribers facing a three-part tariff, and use the estimates to study the welfare implications of...

We study the effect of congestion on monopoly second-degree price discrimination. We provide three results. First, with congestion, the firm does not always provide distinct contracts (i.e., it is not always optimal to price discriminate) and it is more likely for the low-valuation buyer to be...

type="main" <p>We provide empirical evidence that multimarket contact facilitates tacit collusion among airlines using a flexible model of oligopolistic behavior, where conduct parameters are modelled as functions of multimarket contact. We find (i) carriers with little multimarket contact do not...</p>

We investigate the role of limited access to airport facilities as a determinant of the hub premium in the U.S. airline industry. We use original data from competition plans that airports are required to submit to the U.S. Department of Transportation in compliance with the Aviation Investment...