Exchange of goods while investing into production and safety
The tradeoff between production and safety investment is scrutinized for two agents who convert resources into production and safety investment while simultaneously exchanging goods voluntarily. We quantify how two Cobb-Douglas parameters, one scaling production versus safety, and the other scaling the relative importance of two goods, impact two agentsâ€™ production, safety effort, incomes, export, import, price, and utilities. An agentâ€™s income from producing a good reaches a maximum for an intermediate value of the Cobb-Douglas parameter that scales the importance of productive effort relative to safety effort. The price of good 2 in terms of good 1, and the agentsâ€™ utilities, depend on both the Cobb Douglas parameters, the productivity parameter, and both agentsâ€™ resources and unit costs of production and safety effort.
Volume (Year): 1 (2013)
Issue (Month): ()
|Contact details of provider:|| Web page: http://www.ioz.pwr.wroc.pl/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David J. Feber & Judith M. Feldmeier & Keith J. Crocker, 2003. "The Economic Effects of Road Safety Improvements: An Insurance Claims Analysis," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(4), pages 651-664.
- Thomas, Steve, 1999. "Economic and safety pressures on nuclear power: a comparison of Russia and Ukraine since the break-up of the Soviet Union," Energy Policy, Elsevier, vol. 27(13), pages 745-767, November.
- Hirshleifer, Jack, 1995.
"Anarchy and Its Breakdown,"
Journal of Political Economy,
University of Chicago Press, vol. 103(1), pages 26-52, February.
- Jack Hirshleifer, 1992. "Anarchy and Its Breakdown," UCLA Economics Working Papers 674, UCLA Department of Economics.
- Beth Allen, 2000. "The Future of Microeconomic Theory," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 143-150, Winter.
- Swinbank, Alan, 1993. "The economics of food safety," Food Policy, Elsevier, vol. 18(2), pages 83-94, April.
- Kotz, Hein & Schafer, Hans-Bernd, 1993. "Economic incentives to accident prevention: An empirical study of the German sugar industry," International Review of Law and Economics, Elsevier, vol. 13(1), pages 19-33, March.
- Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 166-179, January.
- Anderton, Charles H., 1999. "Appropriation possibilities in a simple exchange economy," Economics Letters, Elsevier, vol. 63(1), pages 77-83, April.
- Kjell Hausken, 2004. "Mutual Raiding of Production and the Emergence of Exchange," Economic Inquiry, Western Economic Association International, vol. 42(4), pages 572-586, October.
- Kjell Hausken & John F. Moxnes, 2005. "The Dynamics Of Multilateral Exchange," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 607-631.
- Samuel Bowles & Herbert Gintis, 1993. "The Revenge of Homo Economicus: Contested Exchange and the Revival of Political Economy," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 83-102, Winter.
- Kjell Hausken & John F. Moxnes, 2005. "The Dynamics Of Bilateral Exchange And Division Of Labor," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 117-137.
- Walter Y. Oi, 1974. "The Economics of Product Safety: A Rejoinder," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 689-695, Autumn.
- Rose, Nancy L, 1990. "Profitability and Product Quality: Economic Determinants of Airline Safety Performance," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 944-964, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wut:journl:v:1:y:2013:p:29-35:id:1052. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piotr Wawrzynowski)
If references are entirely missing, you can add them using this form.