Many cases of externalities in agricultural production, such as pesticide drift, crosspollination, and offensive odors, are attributable to the incompatibility of neighboring land uses and exhibit distance dependence. We characterize equilibrium spatial patterns of externality-generating and -receiving land uses on a two-dimensional lattice with noncooperative, profit-maximizing producers. In e...

We study optimal experimentation by a monopolistic platform in a two-sided market. The platform provider faces uncertainty about the strength of the externality each side is exerting on the other. It maximizes the expected present value of its pro t stream in a continuous-time in nite-horizon framework by setting participation fees or quantities on both sides. We show that a price-setting platf...

Externalities occur where an economic actor takes a decision which results in actions that affect other parties without their consent. In most cases, the creator of the externality will be a corporation because they are the most important actors in modern economies. There is a market failure as the corporation obtains all the benefits of the activity but does not bear all the costs. Since Ronal...

In this note we characterize the restriction of the externality-free value of de Clippel and Serrano (2008) to the class of simple games with externalities introduced in Alonso-Meijide et al. (2015).

This paper presents the results of research carried out within a broader study of the economics of charitable activity in conjunction with Mr. A. ABSTRACT Discussion of the optimal fiscal treatment of charity has hitherto been restricted largely to consideration of an efficiertcy (or externality) justification for subsidies to charity, and in particular. to the optimal tax treatment of charitab...

Peer effects in innovation adoption decisions have been extensively studied. However, the underlying mechanisms of peer effects are generally not explicitly accounted for. Gaps in this knowledge could lead to misestimation of peer effects and inefficient interventions. This study examined the role of two mechanisms—sharing experiences (namely, experience effect) and externalities—in the adoptio...

We study the impact of yield uncertainty (supply side) and self-interested consumers (demand side) on the inefficiency in the influenza vaccine supply chain. Previous economic studies, focusing on demand side, find that the equilibrium demand is always less than the socially optimal demand since self-interested individuals do not internalize the social benefit of protecting others via reduced i...