Hazardous Enterprises and Risk Bearing Capacity

Hazardous Materials Transport Risk

In this paper, we propose toll-setting as an alternative policy tool to regulate the use of roads for dangerous goods shipments. We propose a mathematical formulation as well as a solution method for the hazardous materials tool problem. Based on a comparative analysis of proposed mathematical models, we show that toll policies can be more effective than the popular network design policies that...

An Integral Method of Evaluating the Innovative Capacity of Enterprises

Innovative capacity as a potential ability of an enterprise to innovative development is manifested in the process of formation and realization of an innovative product, which can be embodied in various forms. In the article innovation capacity is considered as a complex concept that covers the innovative output of the enterprise and the reserve for providing innovative capacity, which can make...

A Study of Deficiencies in the Bearing Capacity Analysis

A Study of Deficiencies in the Bearing Capacity Analysis

Risk-Bearing and Entrepreneurship1

In the “Knightian” theory of entrepreneurship, entrepreneurs provide insurance to workers by paying fixed wages and bear all the risk of production. This paper endogenizes entrepreneurial risk by allowing for optimal insurance contracts as well as the occupational self-selection. Moral hazard prevents full insurance; increases in an agent’s wealth then entail increases in risk borne. Thus, even...