IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v89y2007i2p520-532.html
   My bibliography  Save this article

Pareto Optimal Trade in an Uncertain World: GMOs and the Precautionary Principle

Author

Listed:
  • Robert G. Chambers
  • Tigran A. Melkonyan

Abstract

Optimal trade policy in an uncertain world is examined. Decision-maker attitudes toward uncertainty are represented in terms of the Gilboa-Schmeidler (1989) maximin expected-utility (MMEU) model. The central result is that in a two-country, general-equilibrium setting with both trading partners possessing an MMEU preference structure, Pareto optimality can require one trading partner to absorb all uncertainty in the economy if its set of priors is a subset of its trading partners. An immediate corollary is that autarky is Pareto optimal if the trading partner with the more inclusive set of priors either chooses or is endowed with a nonstochastic technology. Copyright 2007, Oxford University Press.

Suggested Citation

  • Robert G. Chambers & Tigran A. Melkonyan, 2007. "Pareto Optimal Trade in an Uncertain World: GMOs and the Precautionary Principle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 520-532.
    • Handle: RePEc:oup:ajagec:v:89:y:2007:i:2:p:520-532
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1365-2966.2007.01015.x
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Treich, Nicolas, 2010. "The value of a statistical life under ambiguity aversion," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 15-26, January.
    2. Daniel C. Voica & Troy G. Schmitz, 2022. "Trading risk for ambiguity: Production versus health under pesticide application," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1327-1342, August.
    3. Varios Autores, 2016. "Lecturas Sobre Derecho Del Medio Ambiente. Tomo Xvi," Books, Universidad Externado de Colombia, Facultad de Derecho, number 852, October.
    4. Marielle Brunette & Laure Cabantous & Stéphane Couture & Anne Stenger, 2009. "Assurance, intervention publique et ambiguïté : une étude expérimentale auprès de propriétaires forestiers privés," Économie et Prévision, Programme National Persée, vol. 190(4), pages 123-134.
    5. Iván Darío Gómez Lee, 2016. "La Seguridad Jurídica. Una Teoría Multidisciplinaria Aplicada A Las Instituciones Vol.Ii," Books, Universidad Externado de Colombia, Facultad de Derecho, number 851, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:89:y:2007:i:2:p:520-532. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.