Biosecurity Incentives, Network Effects, and Entry of a Rapidly Spreading Pest
Protection against pest invasion is a public good. Yet the nature of private incentives to avoid entry is poorly understood. This work shows that, due to increasing returns or network effects, private actions to avoid entry are strategic complements. This means that compulsory action, at least by a subset of parties, can be an effective policy. Both heterogeneity in biosecurity costs and the effect of private actions on the extent of the invasion threat are shown to have ambiguous effects on the magnitude of welfare loss due to strategic behavior. Communicated leadership by some party is preferred to simultaneous moves, and it may be best if the party with highest biosecurity costs assumes a leadership role.
|Date of creation:||29 Mar 2012|
|Date of revision:|
|Publication status:||Published in Ecological Economics, December 2008, vol. 68 no. 1-2, pp. 230-239|
|Contact details of provider:|| Postal: |
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
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.:
- Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
- Echenique, Federico & Edlin, Aaron, 2004.
"Mixed equilibria are unstable in games of strategic complements,"
Journal of Economic Theory,
Elsevier, vol. 118(1), pages 61-79, September.
- Echenique, Federico & Edlin, Aaron S., 2004. "Mixed equilibria are unstable in games of strategic complements," Berkeley Olin Program in Law & Economics, Working Paper Series qt1ht651hk, Berkeley Olin Program in Law & Economics.
- Vives, X., 1988.
"Nash Equilibrium With Strategic Complementarities,"
UFAE and IAE Working Papers
107-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Shy,Oz, 2001.
"The Economics of Network Industries,"
Cambridge University Press, number 9780521805001.
- McAusland, Carol & Costello, Christopher, 2004. "Avoiding invasives: trade-related policies for controlling unintentional exotic species introductions," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 954-977, September.
- Eyal Winter, 2004.
"Incentives and Discrimination,"
American Economic Review,
American Economic Association, vol. 94(3), pages 764-773, June.
- J. E. Stiglitz, 1999. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 28(3), pages 249-254, November.
- David A. Hennessy, 2007. "Biosecurity and Spread of an Infectious Animal Disease," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1226-1231.
- Batabyal, Amitrajeet A. & Beladi, Hamid, 2006.
"International trade and biological invasions: A queuing theoretic analysis of the prevention problem,"
European Journal of Operational Research,
Elsevier, vol. 170(3), pages 758-770, May.
- Beladi, Hamid & Batabyal, Amitrajeet A., 2004. "International Trade And Biological Invasions: A Queuing Theoretic Analysis Of The Prevention Problem," 2004 Annual meeting, August 1-4, Denver, CO 19912, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005.
"How trade politics affect invasive species control,"
Elsevier, vol. 52(3), pages 305-313, February.
- Margolis, Michael & Shogren, Jason, 2004. "How Trade Politics Affect Invasive Species Control," Discussion Papers dp-04-07, Resources For the Future.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2005.
"After you - endogenous sequencing in voluntary contribution games,"
Other publications TiSEM
db491f52-df7b-43dd-ab2b-7, Tilburg University, School of Economics and Management.
- Potters, Jan & Sefton, Martin & Vesterlund, Lise, 2005. "After you--endogenous sequencing in voluntary contribution games," Journal of Public Economics, Elsevier, vol. 89(8), pages 1399-1419, August.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2003. "After You - Endogenous Sequencing in Voluntary Contribution Games," Discussion Paper 2003-98, Tilburg University, Center for Economic Research.
- James Andreoni, 1998.
"Toward a Theory of Charitable Fund-Raising,"
Journal of Political Economy,
University of Chicago Press, vol. 106(6), pages 1186-1213, December.
- Perrings, Charles, 2005. "Mitigation and adaptation strategies for the control of biological invasions," Ecological Economics, Elsevier, vol. 52(3), pages 315-325, February.
- Richard D. Horan & Charles Perrings & Frank Lupi & Erwin H. Bulte, 2002. "Biological Pollution Prevention Strategies under Ignorance:The Case of Invasive Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1303-1310.
- Shogren, Jason F. & Tschirhart, John, 2005. "Integrating ecology and economics to address bioinvasions," Ecological Economics, Elsevier, vol. 52(3), pages 267-271, February.
- Linda Fernandez, 2006. "Marine Shipping Trade And Invasive Species Management Strategies," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 153-168.
- Eyal Winter, 2006. "Optimal incentives for sequential production processes," RAND Journal of Economics, RAND Corporation, vol. 37(2), pages 376-390, 06.
- Leung, Brian & Finnoff, David & Shogren, Jason F. & Lodge, David, 2005. "Managing invasive species: Rules of thumb for rapid assessment," Ecological Economics, Elsevier, vol. 55(1), pages 24-36, October.
- Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-77, November.
- Horan, Richard D. & Lupi, Frank, 2005. "Tradeable risk permits to prevent future introductions of invasive alien species into the Great Lakes," Ecological Economics, Elsevier, vol. 52(3), pages 289-304, February.
- Lars J. Olson & Santanu Roy, 2002. "The Economics of Controlling a Stochastic Biological Invasion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1311-1316.
- Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
- de Zeeuw, A.J., 1998. "The acid rain differential game," Other publications TiSEM f6c561bf-c603-4de7-994c-e, Tilburg University, School of Economics and Management.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:35016. 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: (Curtis Balmer)
If references are entirely missing, you can add them using this form.