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|
|Publication status:||Published in Ecological Economics, December 2008, vol. 68 no. 1-2, pp. 230-239|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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.:
- Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
- Eyal Winter, 2004.
"Incentives and Discrimination,"
American Economic Review,
American Economic Association, vol. 94(3), pages 764-773, June.
- 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., 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, 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.
- Margolis, Michael & Shogren, Jason, 2004.
"How Trade Politics Affect Invasive Species Control,"
dp-04-07, Resources For the Future.
- Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005. "How trade politics affect invasive species control," Ecological Economics, Elsevier, vol. 52(3), pages 305-313, February.
- 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).
- 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.
- 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.
- 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.
- Eyal Winter, 2006. "Optimal incentives for sequential production processes," RAND Journal of Economics, RAND Corporation, vol. 37(2), pages 376-390, 06.
- 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.
- Shy,Oz, 2001.
"The Economics of Network Industries,"
Cambridge University Press, number 9780521800952, December.
- 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.
- 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.
- 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.
- Shogren, Jason F. & Tschirhart, John, 2005. "Integrating ecology and economics to address bioinvasions," Ecological Economics, Elsevier, vol. 52(3), pages 267-271, February.
- J. E. Stiglitz, 1999. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 28(3), pages 249-254, November.
- 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.
- 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.
- 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.
- Vives, Xavier, 1990.
"Nash equilibrium with strategic complementarities,"
Journal of Mathematical Economics,
Elsevier, vol. 19(3), pages 305-321.
- 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.
- Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-1277, November.
- Perrings, Charles, 2005. "Mitigation and adaptation strategies for the control of biological invasions," Ecological Economics, Elsevier, vol. 52(3), pages 315-325, February.
- 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.
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 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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.