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Biosecurity Incentives, Network Effects, and Entry of a Rapidly Spreading Pest

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  • Hennessy, David A.

Abstract

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.

Suggested Citation

  • Hennessy, David A., 2012. "Biosecurity Incentives, Network Effects, and Entry of a Rapidly Spreading Pest," Staff General Research Papers Archive 35016, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:35016
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    Cited by:

    1. Chitchumnong, Piyayut & Horan, Richard D., 2015. "Multiple Choices, Strategic Interactions, and Market Effects in Livestock Disease Risk Management," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205778, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. Bate, Andrew M. & Jones, Glyn & Kleczkowski, Adam & MacLeod, Alan & Naylor, Rebecca & Timmis, Jon & Touza, Julia & White, Piran C.L., 2016. "Modelling the impact and control of an infectious disease in a plant nursery with infected plant material inputs," Ecological Modelling, Elsevier, vol. 334(C), pages 27-43.
    3. repec:bla:ecorec:v:93:y:2017:i:301:p:277-301 is not listed on IDEAS
    4. Martin Gregor, 2011. "Tradeoffs of foreign assistance for the weakest-link global public goods," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(2), pages 233-251, April.
    5. Florec, Veronique & Sadler, Rohan J. & White, Ben & Dominiak, Bernie C., 2013. "Choosing the battles: The economics of area wide pest management for Queensland fruit fly," Food Policy, Elsevier, vol. 38(C), pages 203-213.

    More about this item

    Keywords

    communication; complementarity; increasing returns; infectious disease; invasive species; network economics; public good;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • H4 - Public Economics - - Publicly Provided Goods
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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