optimal shared savings contracts in supply chains linear contracts and double moral hazard in many supply chains consumption of indirect materials sold by a supplier to a customer for use in her production process can be reduced by efforts exerted by either party since traditional supply contracts provide no incentive for the supplier to exert such effort shared savings contracts have been proposed as a way to improve incentives in the channel leading to more efficient effort choices by the two parties such shared savings contracts typically combine a fixed service fee with a variable component based on consumption volume we formalize this situation using the double moral hazard framework in which both parties decide how much effort to exert by trading off the cost of their effort against the benefits that they will obtain from reduced consumption we also extend the double moral hazard framework to analyze a broader class of cost of effort functions than considered so far including the linear cost of effort functions commonly found in practice we show that the supplier can still always induce the optimal second best equilibrium with a linear shared savings contract under this broader class of functions however the behavior of the optimal contract as a function of the problem parameters becomes more complex we illustrate how small changes in the problem parameters can turn profits from being a well behaved to a poorly behaved function of the contract and provide some theoretical characterization of this phenomenon the practical significance of this is that simple linear contracts are sufficient in many double moral hazard contexts even for the broader class of functions we consider but care must be taken in selecting the optimal contract parameters

the role of demand in land re development abstract vacant previously developed land in cities can generate negative externalities on surrounding areas and is often the target of policies to promote re development this paper provides estimates of the price sensitivity of land re development a crucial parameter for the success of these policies my estimates measure how prices affect long run conversion of unused or underused previously developed land in england the empirical strategy uses school test scores and admission district boundaries in a boundary discontinuity design to generate variation in housing demand that is orthogonal to re development costs results show that the probability of re development is effectively sensitive to housing prices estimates indicate that a 1 increase in prices leads to a 0 07 percentage point reduction in the fraction of hectares containing brownfield land price differences or substantial subsidies could lead to a significant amount of re development in the long run this is confirmed by observed land use changes between 2007 and 2011 being disproportionately concentrated in high price areas

an extension of mohring s model for land rent distribution abstract in an early paper herbert mohring j pol econ 49 1961 presented a model for land rent distribution yielding the well known result that the price of land must fall with the distance from the city center to offset transportation costs our paper is an extension of mohring s model in which we relax some of his drastic simplifying assumptions this extended model has been incorporated in a method for economic evaluation of city master plans which has been applied to a swedish city in this method the interdependence among housing heating and transportation the durability of urban structures and the uncertainty of future demand are explicitly considered within a cost benefit approach some empirical results from this pilot study concerning land rent distributions are also presented here

residential spatial growth with perfect foresight and multiple income groups abstract this paper presents explicit solutions for expanding monocentric cities with two or more income groups housing is durable but deteriorates over time and redevelopment cannot take place landlords have perfect foresight the utility function and housing technology are cobb douglas population per capita income and transportation costs per mile change at constant percentage rates the model is solved analytically using an infinite time horizon as development proceeds outward a constant fraction of land is developed with high income housing and the remaining land is reserved for future low income development at any time housing is constructed at one distance for high income consumers and at a lesser distance for low income consumers high income housing is first occupied by high income consumers then filters to low income consumers and is ultimately abandoned low income housing is first occupied by low income households and ultimately abandoned

the effects of deregulation de unionization technology and human capital on the work and work lives of truck drivers this paper investigates the sources of wage decline among truck drivers the authors first present an overview of the work and work life of truck drivers and then take two complementary approaches to disentangling the forces that reduced driver earnings the earnings of truck drivers fell by 21 between 1973 and 1995 using current population survey data the authors find that deregulation accounted for one third of the decline in drivers wages with a larger negative effect for non union workers the other two thirds of the decline was due to economic forces that broadly affected the blue collar economy using unique survey data the authors explore the effects of factors frequently cited as sources of blue collar wage decline this analysis indicates that only one new technology satellite communication systems had meaningful effects on drivers earnings which rose as a consequence of superior efficiency and work intensification union membership remains an important determinant of wages the authors conclude that the primary sources of wage decline and increased wage inequality have been deregulation de unionization and a declining manufacturing wage

designing supply contracts contract type and information asymmetry this paper studies the value to a supplier of obtaining better information about a buyer s cost structure and of being able to offer more general contracts we use the bilateral monopoly setting to analyze six scenarios three increasingly general contracts wholesale pricing schemes two part linear schemes and twopart nonlinear schemes each under full and incomplete information about the buyer s cost structure we allow both sides to refuse to trade by explicitly including reservation profit levels for both for the supplier this is implemented through a cutoff policy we derive the supplier s optimal contracts and profits for all six scenarios and examine the value of information and of more general contracts our key findings are as follows first the value of information is higher under two part contracts second the value of offering two part contracts is higher under full information and third the proportion of buyers the supplier will choose to exclude can be substantial

comparative statics analysis of a fully closed city abstract this paper extends the existing comparative statics analysis about open or semiclosed cities notably that of w wheaton j econom theor 9 2 223 237 1974 to a fully closed city where urban land rent is redistributed to the city population specifically we examine the effects on changes in exogenous variables such as population size agricultural rent and initial endowments on endogenous variables such as welfare level city size and rent schedule most but not all of the existing results are reestablished surprisingly it is shown that in contrast to the existing literature and perhaps to intuition the city area may shrink when the city population increases the paper also extends the existing literature by analyzing the effect of the exogenous variables on the endogenous income and the demand for transportation it is shown that under plausible assumptions the quantity of transportation demanded declines with its price

dynamics of urban land use sequential location of an office firm and residence abstract the objective of this paper is to depict the transition in the land use pattern of the suburbanization of workers and the concentration of business firms by considering a sequential entry of a firm and its worker who minimize the total cost under monopsony in the land market the equilibrium development process of the urban land use pattern under a height restriction is derived it is shown that the first replacement of a residence with a firm always takes place at an intermediate location and successive replacements take place inwardly with alternations of right and left and then outward replacements begin when the height regulation is removed the equilibrium density function of firms is shown to be a duocentric cosine truncated curve symmetrical with respect to the city center and the equilibrium density function of residence is linear it is also demonstrated that the optimum density distribution of the firms and the workers becomes identical to the equilibrium distribution except for a difference in a parameter value and that the optimum central business district cbd and city lengths are shorter than the equilibrium cbd and city lengths respectively

long term and penalty contracts in a two stage supply chain with stochastic demand abstract recent applications of game theoretic analysis to supply chain efficiency have focused on constructs between a buyer the retailer or manufacturer and a seller the supplier in successive stages of a supply chain if demand for the final product is stochastic then the supplier has an incentive to keep its capacity relatively low to avoid creating unneeded capacity the manufacturer on the other hand prefers the supplier s capacity to be high to ensure that the final demand is satisfied the manufacturer therefore constructs a contract to induce the supplier to increase its production capacity most research examines contracting when final demand is realized after the manufacturer places its order to the supplier however if final demand is realized before the manufacturer places its order to the supplier these types of contracts can be ineffective this paper examines two contracts under the latter timing scenario long term contracts in which the business relationship is repeated and penalty contracts in which the supplier is penalized for too little capacity results indicate long term contracts increase the profit potential of the supply chain furthermore the penalty contracts can ensure that the supplier chooses a capacity level such that the full profit potential is achieved

coordination of supply chains by option contracts a cooperative game theory approach manufacturer retailer supply chains commonly adopt a wholesale price mechanism this mechanism however has often led manufacturers and retailers to situations of conflicts of interest for example due to uncertain market demand retailers prefer to order flexibly from manufacturers so as to avoid incurring inventory costs and to be able to respond flexibly to market changes manufacturers on the other hand prefer retailers to place full orders as early as possible so that they can hedge against the risks of over and under production such conflicts between retailers and manufacturers can result in an inefficient supply chain motivated by this problem we take a cooperative game approach in this paper to consider the coordination issue in a manufacturer retailer supply chain using option contracts using the wholesale price mechanism as a benchmark we develop an option contract model our study demonstrates that compared with the benchmark based on the wholesale price mechanism option contracts can coordinate the supply chain and achieve pareto improvement we also discuss scenarios in which option contracts are selected according to individual supply chain members risk preferences and negotiating powers

evolution of urban housing stocks a model applied to baltimore and houston abstract historical simulations of urban residential growth in baltimore and houston based on a model of the growth process which has two distinct components are presented the vintage component utilizes the growth of income and population and an assumption that housing is putty clay to predict the age distribution of the housing stock in each period the spatial component of the model determines where this housing construction will take place according to 1 housing is built on vacant land and 2 the pattern of construction obeys the rules of the standard monocentric models housing is demolished when economically obsolete the putty clay vintage aspect of the model produces fairly accurate city wide vintage distributions but there is much more mixing of vintages and income in baltimore by location than predicted even under monocentric assumptions most favorable to mixing

urban decline and durable housing urban decline is not the mirror image of growth and durable housing is the primary reason the nature of decline is so different this paper presents a model of urban decline with durable housing and verifies these implications of the model 1 city growth rates are skewed so that cities grow more quickly than they decline 2 urban decline is highly persistent 3 positive shocks increase population more than they increase housing prices 4 negative shocks decrease housing prices more than they decrease population 5 if housing prices are below construction costs then the city declines and 6 the combination of cheap housing and weak labor demand attracts individuals with low levels of human capital to declining cities

a dynamic model of housing production abstract this paper derives the optimal development strategy for a housing producer with perfect foresight in a steady state environment where dwellings deteriorate as they age under the assumption of zero demolition costs the optimal strategy is an infinite sequence of identical buildings building abandonment is shown to be possible with positive demolition costs a solution highlighting the model s spatial properties is computed using cobb douglas functions

an evaluation of vendor selection models from a total cost of ownership perspective abstract many different vendor selection models have been published in the purchasing literature however there has been no systematic approach to compare the relative efficiency of the systems in this paper we propose to use the concept of total cost of ownership as a basis for comparing vendor selection models we illustrate the comparison with a real life data set of the purchasing problem of ball bearings at cockerill sambre a belgian multinational company in the steel industry from a total cost of ownership perspective mathematical programming models outperform rating models and multiple item models generate better results than single item models for this specific case study

strategic commitments for an optimal capacity decision under asymmetric forecast information we study the important problem of how to assure credible forecast information sharing between a supplier and a manufacturer the supplier is responsible for acquiring the necessary capacity before receiving an order from the manufacturer who possesses private forecast information for her end product we address how different contracts affect the supplier s capacity decision and hence the profitability of the supplier and the manufacturer we fully develop two contracts and provide explicit formulae to enable credible forecast information sharing the first is a nonlinear capacity reservation contract under which the manufacturer agrees to pay a fee to reserve capacity the second is an advance purchase contract under which the manufacturer is induced to place a firm order before the supplier secures the component capacity used to build the end product these contracts serve a strategic role in information sharing the capacity reservation contract enables the supplier to detect the manufacturer s private forecast information while the advance purchase contract enables the manufacturer to signal her forecast information we show that channel coordination is possible even under asymmetric forecast information by combining the advance purchase contract with an appropriate payback agreement through our structural and numerical results we also show that the degree of forecast information asymmetry and the risk adjusted profit margin are two important drivers that determine supply chain efficiency and which contract to adopt

a comparative dynamic analysis of zoning in a growing city abstract this paper examines how zoning alters the pace and pattern of residential development in a dynamic open city it shows how zoning comparative dynamics systematically vary within and across urban areas relating predicted effects to time paths of exogenous economic variables determining bid rents binding zoning is seen to fundamentally alter development trajectories temporarily halting development at some locations while inducing leapfrog development at others zoning impacts under both perfect foresight and myopic developer behavior are derived and examined

collective bargaining after deregulation do the teamsters still count using data from the american trucking associations and a 1991 telephone survey of 223 major firms in the general freight segment of the trucking industry sic 4213 the author describes the restructuring of the trucking industry that occurred following economic deregulation that began in 1977 and examines how that restructuring affected industrial relations outcomes such as wages and union strength he finds that both market concentration and competition increased after 1977 he also concludes that regulatory restructuring led the general freight industry to divide into two sectors one handling full truckload shipments shipments of 10 000 pounds or more and one handling less than truckload shipments the teamsters union lost bargaining power in the truckload sector but it retained much of its bargaining power within the less than truckload sector

site density restrictions measurement and empirical analysis abstract restrictions on the density at which development can occur are a central tool of land use regulation yet they are understudied in the empirical literature in this paper we present a methodology to identify how much restrictions on the ratio of building space to lot area constrain developers our approach generates a measure of the distortion from the private optimum caused by restrictions as a function of land prices and the maximum allowed ratio of floor space to lot area we use this methodology to examine how the set of incentives facing different levels of local government in shanghai china affects density constraints on redevelopment sites in the city s emerging real estate market

optimal spatial growth of employment and residences abstract this paper examines the location patterns of employment and residences in an urban area characterized by irreversible land use commitments and smoothly growing population it is assumed that all output is shipped to the center of the urban area and that workers have commuting costs of getting to work the optimal solution which is also the equilibrium solution minimizes the present discounted value of aggregate shipping costs plus commuting costs the residential area expands outward over time but a constant fraction of the land is always reserved for future employment development

the effects of government housing policies in a vintage filtering model abstract long run and short run effects of low income government housing policies are examined in a model that treats housing as a durable good which declines in quality over time short run and long run market equilibria are characterized rent subsidies are analyzed in detail and results for other policies are presented

spatial growth and redevelopment with perfect foresight and durable housing abstract in this paper i present a theoretical model of the spatial growth of an urban area with durable housing i combine several assumptions that typically complicate the analysis i housing developers have perfect foresight ii the initial development and many waves of redevelopment are considered in each developer s plan and iii the closed city assumption is made so that the time path of population is exogenous and that of consumer utility is endogenous i still obtain explicit solutions for the spatial pattern of urban growth and for the timing of the initial residential development and each successive redevelopment at each distance from the urban center i compare perfect foresight growth to growth with static expectations and i examine the comparative statics of both

hedonic pricing with redevelopment options a new approach to estimating depreciation effects abstract the standard hedonic model of durable assets is a special case of a more general model that contains two additive terms 1 use value of the existing hedonic vector and 2 the value of the option to reconfigure hedonic characteristics one empirical implication is that the two parts of value are related e g use value increases with interior area whereas option value decreases with intensity the ratio of structure value divided by land value increases in building age reduce use value but increase option value data from greenwich connecticut indicate that intensity has the expected negative effect coefficients on building age are shown to be better measures of depreciation when intensity variables are included in the regression

supplier switching decisions abstract in order to maximize profit a buying firm should continuously search for and access sources which offer more favorable prices while the literature is replete with works on the formation and development of buyer supplier relationships there is surprisingly only scarce research on the termination of such relationships and supplier switching using the concept of switching costs in a principal agent framework we at first analyze whether a firm switches the entire or a partial quantity to an alternative supplier when there is either symmetric or asymmetric information about the alternative supplier s cost structure information asymmetry results in inert supplier switching decisions subsequently we extend our model and take competitive reactions of the incumbent supplier and economies of scale effects into consideration we find conditions under which no partial and complete switching occurs which depend on the buying firm s beliefs about the alternative supplier s unit costs switching costs the price offered by the incumbent supplier and refinements of the price offered by the incumbent supplier due to competitive reactions and economies of scale broader implications for supplier relationship management and sourcing strategy decisions are also provided

promised lead time contracts under asymmetric information we study the important problem of how a supplier should optimally share the consequences of demand uncertainty i e the cost of inventory excesses and shortages with a retailer in a two level supply chain facing a finite planning horizon in particular we characterize a multiperiod contract form the promised lead time contract that reduces the supplier s risk from demand uncertainty and the retailer s risk from uncertain inventory availability under the contract terms the supplier guarantees on time delivery of complete orders of any size after the promised lead time we characterize the optimal promised lead time and the corresponding payments that the supplier should offer to minimize her expected inventory cost while ensuring the retailer s participation in such a supply chain the retailer often holds private information about his shortage cost or his service level to end customers hence to understand the impact of the promised lead time contract on the supplier s and the retailer s performance we study the system under local control with full information and local control with asymmetric information by comparing the results under these information scenarios to those under a centrally controlled system we provide insights into stock positioning and inventory risk sharing we quantify for example how much and when the supplier and the retailer overinvest in inventory as compared to the centrally controlled supply chain we show that the supplier faces more inventory risk when the retailer has private service level information we also show that a supplier located closer to the retailer is affected less by information asymmetry next we characterize when the supplier should optimally choose not to sign a promised lead time contract and consider doing business under other settings in particular we establish the optimality of a cutoff level policy finally under both full and asymmetric service level information we characterize conditions when optimal promised lead times take extreme values of the feasible set yielding the supplier to assume all or none of the inventory risk hence the name all or nothing solution we conclude with numerical examples demonstrating our results

residential buildings and the cost of construction new evidence on the efficiency of the housing market present value studies of asset market efficiency are controversial because they compare asset prices to unobserved discounted streams of future rents as an alternative if housing markets are efficient then the price of residential capital or buildings should satisfy the following two conditions i deviations between new building prices and construction costs should disappear faster than construction lags and have no effect on construction and ii temporary building price shocks should dissipate at a similar rate for different vintage buildings results from an error correction model support both hypotheses for single family housing in vancouver british columbia this implies that the implicit market for residential buildings is efficient and that any inefficiencies in the housing market must lie in the market for land itself

uniform spatial growth with perfect foresight and durable housing abstract this paper presents explicit solutions for expanding monocentric cities housing is durable and redevelopment cannot take place landlords have perfect foresight the utility function and housing technology are cobb douglas the population of the city per capita income construction costs and transportation costs per mile change at constant percentage rates the model is solved analytically using an infinite time horizon if the population growth rate is greater less than twice the difference between the growth rates of income and transportation costs development density increases decreases with distance from the city center detailed comparative statics are presented for both open city and closed city growth

controlling for supplier switching in the presence of real options and asymmetric information abstract applying a real option approach this paper examines how asymmetric information alters key variables of a firm s supplier switching process such as the timing of contracting hurried versus delayed contracting transfer payments set up switching and abandonment decisions in a symmetric information setting delayed contracting is unambiguously beneficial abandoning the once established relation with the entrant supplier is never an issue in contrast under asymmetric information hurried contracting with potentially abandoning the relation can be beneficial consistent with adverse selection models we find that under delayed contracting in equilibrium the firm switches less frequently to the entrant supplier switching inertia surprisingly we also find that under hurried contracting the firm switches more frequently to the entrant supplier switching acceleration and may abandon the relation finally we study how these key variables of the supplier switching process change when also the incumbent supplier has private information two sided asymmetric information case

selection of contract suppliers under price and demand uncertainty in a dynamic market in this paper we consider a supply contracting problem in which the buyer firm faces non stationary stochastic price and demand first we derive analytical results to compare two pure strategies i periodically purchasing from the spot market and ii signing a long term contract with a single supplier the results from the pure strategies show that the selection of suppliers can be complicated by many parameters and is particularly affected by price uncertainty we then develop a stochastic dynamic programming model to incorporate mixed strategies purchasing commitments and contract cancellations computational results show that increases in price demand uncertainty favor long term short term suppliers by examining the two way interactions of contract factors price demand purchasing bounds learning and technology effect salvage values and contract cancellation both intuitive and non intuitive managerial insights in outsourcing strategies are derived

urban spatial development with durable but replaceable capital the theory of urban spatial development until recently has been primarily a static theory of economic equilibrium the models of alonso l mills 6 and muth 7 determine a complete spatial equilibrium between the supply and demand for urban land the study of growth or change in such models therefore has been limited exclusively to comparative statics wheaton 8 it should be clear that the central and in many respects unrealistic assumption of such models is that housing capital is neither physically nor economically durable without durability there is no opportunity cost to old capital no barrier to change and no history to an urban area within such a framework a common set of conclusions emerges regarding urban spatial structure residential density and the price per unit of land decline monotonically from the location of employment a greater population results in higher density at all locations while increases in income or decreases in the cost of travel create a more steeply sloped density and price gradient in the last few years there has been a growing awareness that the equilibrium portrayed by such models does not correctly reflect the process of urban development theoretical papers by anas 2 31 and brueckner 4 and an empirical model by harrison and kain 5 develop an alternative theory of urban spatial development in which the process of growth is explicitly modeled and in which capital is completely durable in their models the spatial development of cities occurs incrementally over time in successive rings from the center of employment outwards the development of each ring is done with myopic foresight and is therefore determined exclusively by market conditions at the time of development once built

a supplier s optimal quantity discount policy under asymmetric information in the supply chain literature an increasing body of work studies how suppliers can use incentive schemes such as quantity discounts to influence buyers ordering behaviour thus reducing the supplier s and the total supply chain s costs various functional forms for such incentive schemes have been proposed but a critical assumption always made is that the supplier has full information about the buyer s cost structure we derive the optimal quantity discount policy under asymmetric information and compare it to the situation where the supplier has full information

option value to waiting created by a control problem we study a principal agent model in which there is an option to defer a capital project approval decision a control incentive problem makes the option to wait valuable when it would not have been valuable otherwise deferring the project approval decision has both a cost and a benefit the cost of waiting is that the agent s uncertainty regarding future project cost realizations cannot be exploited however by delaying the first project s approval decision the principal can condition its approval on the agent s cost report of the second project such conditioning can be valuable in the provision of incentives because of a diversification effect

selling to the newsvendor with a forecast update analysis of a dual purchase contract we consider a supply chain in which a manufacturer sells to a procure to stock retailer facing a newsvendor problem with a forecast update under a wholesale price contract the retailer waits as long as she can and optimally places her order after observing the forecast update we show that the retailer s wait and decide strategy induced by the wholesale price contract hinders the manufacturer s ability to 1 set the wholesale price and maximize his profit 2 hedge against excess inventory risk and 3 reduce his profit uncertainty to mitigate the adverse effect of wholesale price contract we propose the dual purchase contract through which the manufacturer provides a discount for orders placed before the forecast update we characterize how and when a dual purchase contract creates strict pareto improvement over a wholesale price contract to do so we establish the retailer s optimal ordering policy and the manufacturer s optimal pricing and production policies we show how the dual purchase contract reduces profit variability and how it can be used as a risk hedging tool for a risk averse manufacturer through a numerical study we provide additional managerial insights and show for example that market uncertainty is a key factor that defines when the dual purchase contract provides strict pareto improvement over the wholesale price contract

drivers of disruption estimating the uber effect abstract a frequent belief is that the rise of so called gig work has led to the displacement of workers in a wide range of traditional jobs this paper examines the impacts of the flagship of the gig economy uber on workers employed in conventional taxi services our analysis exploits newly collected data on the staggered rollout of uber across metropolitan areas in the united states and a difference in differences design to document that incumbent taxi drivers experienced a relative earnings decline of about 10 percent subsequent to uber s entry into a new market while there are no significant effects on their labor supply additional evidence from a battery of placebo tests event study estimates and specifications using google trends data to capture differences in treatment intensity underlines these findings a triple differences design that compares changes among taxi drivers relative to bus tractor and truck drivers that were unaffected by the arrival of uber provides further supporting evidence that the diffusion of uber has reduced the earnings potential of incumbent drivers in conventional taxi services in the united states

urban economic theory land use and city size this book examines the economic reasons why people choose to live where they live and develops through analysis of the bid rent function a unified theory of urban land use and city size the first part of the book explicates the basic theory of urban land use and optimal city size residential location behavior of households is examined in a microeconomic framework and equilibrium and optimal patterns of residential land use are discussed the corresponding equilibrium and optimal city sizes are studied in a variety of contexts part two extends the classical theories of von thunen and alonso with the addition of externality factors such as local public goods crowding and congestion and racial prejudice the rigorous mathematical approach and theoretical treatment of the material make urban economic theory of interest to researchers in urban economics location theory urban geography and urban planning

spatial patterns of residential development abstract a simple dynamic model of residential development with durable housing where all households are identical and all developers have perfect foresight is studied it is shown that unlike the case of static models it is quite possible that house size decreases and thus population density increases with distance from the city center and that the house rent curve has positive gradient in certain area

a dynamic model of supplier switching abstract while a broad branch of literature deals with the development of buyer supplier relationships limited research exists under which circumstances a buyer should terminate such a relationship and switch to a new supplier recently wagner and friedl 2007 have developed a framework to analyze a static one shot supplier switching decision when the buyer has asymmetric information about the supplier s production costs we extend their basic framework to a dynamic one assuming that the supplier learns the production costs over time when he sets up the production process since the supplier s cost information at the individual stages crucially determines the setup and the switching decision it becomes essential for supply chain management to provide proper incentives so that the supplier reveals his cost information truthfully over time we characterize the optimal setup and switching strategy as well as the optimal supply chain contract we also compare our findings with those of the static setting to provide further insights

supply chain coordination with insurance contract abstract we propose an insurance contract under which the supplier shares the risk of overstock and understock with the retailer improving the efficiency of the supply chain with a newsvendor type product we first show that the insurance contract could coordinate the supply chain and obtain bargaining solution in the supply chain model then we investigate the effects of agents risk aversion on the supply chain model and acquire the pareto optimal solution through the mean variance approach after that we compare the insurance contract with the revenue sharing contract focusing particularly on their differences finally extensive numerical studies are conducted and managerial implications are proposed

responsiveness of rural and urban land uses to land rent determinants in the u s south ricardian and von thunen land rent models are combined into a single land use share model including farm forest and urban land uses the land share model is applied to the southern united states and elasticities are extracted that measure land share response to changes in population income land values prices and costs in counties with different degrees of urbanizationt he study explores the effect of treating either rural or urban land as a residual use while this practice is common in existing land use studies it is found to significantly affect parameter estimates in this county level analysis

costs of adjustment and the spatial pattern of a growing open city this paper investigates the effect of costs of adjustment on the dynamic characteristics of intra urban resource allocation the analysis is concentrated on the development pattern of an open city within a system of many cities both in steady state and in variable state economies competitive equilibrium of the urban system as a whole is also discussed and compared to pareto optimum allocation some of the results that characterize the resource allocation under static analysis are reestablished for the dynamic case as well but others that follow from comparative statics are shown to be incorrect under the dynamic analysis

the fundamentals of land prices and urban growth abstract in a very simple model in which capital is durable and landowners have perfect foresight the price of urban land has four additive components the value of agricultural land rent the cost of conversion the value of accessibility and the value of expected future rent increases a growth premium in rapidly growing cities the growth premium may easily account for half of the average price of land and may create a large gap between the price of land at the boundary minus conversion cost and the value of agricultural land rent

the joint influence of agricultural and nonfarm factors on real estate values an application to the mid atlantic region county level farmland and residential housing values are estimated for the mid atlantic region as a function of farm returns developed land values household incomes population densities and location results are based on the hypothesis that farmland owners anticipate land development and that nonfarm factors are important determinants of farmland prices response of farmland prices to change in farm returns is found to be inelastic and relatively uniform in rural and urban counties response to nonfarm factors is found to be more elastic and substantially greater in rural counties copyright 2001 oxford university press

trucking deregulation and labor earnings is the union premium a compensating differential this article examines wage determination among union and nonunion truck drivers using the 96 monthly current population surveys for 1983 90 union density in the previously regulated for hire sector of the trucking industry fell from about 60 during the regulatory period of the 1970s to about 25 by 1990 union log wage premiums fell from 0 40 in the 1970s to 0 30 or below in the 1980s longitudinal estimates from multiple panels for 1983 84 through 1989 90 suggest far smaller union premiums supporting the thesis that part of the wage differential following deregulation is a compensating premium for driver quality

growth speculation and sprawl in a monocentric city abstract an economic theory of sprawl in a growing monocentric city is presented where decision makers have perfect foresight leapfrog development and discontinuous land rent functions may occur and be efficient in both an ex post and ex ante sense where the extent of future growth is uncertain decision makers become speculators and the spatial pattern of development is more complicated ex post inefficiency generally occurs

residual income based compensation plans for controlling investment decisions under sequential private information earlier literature has pointed to the effectiveness of residual income type measures based on particular accrual accounting rules such as the relative benefit allocation rule these performance metrics have been shown to generate desirable managerial incentives when investment decisions are delegated this paper further attests to the robustness of these measures by extending the result to a sequential adverse selection model with an inherent real option an option to abandon in other words as long as the residual income measures are judiciously constructed neither private information nor the requirement to selectively exercise an option derails their use in this setting