First published in 1998. This work contributes to the discussion of Knight by showing that uncertainty broadens the conception of economic welfare, and that a new cost analysis holds the key to unlocking the Knightian corpus. It develops Knight's suggestion that uncertainty-control costs can be reduced - arguing that the large firm enjoys economic rent from utilizing its dominant vantage point in the market. The author demonstrates that while Knight provides the intellectual stimulus which propelled Chamberlin's thesis of monopolistic competition, Chamberlin uses a very abstract form of uncertainty in his analysis.

This book explores recent developments in environmental cost-benefit analysis (CBA). This is defined as the application of CBA to projects or policies that have the deliberate aim of environmental improvement or are actions that affect, in some way, the natural environment as an indirect consequence

Benefit cost analysis (BCA) is the best technique for analyzing proposed or previously enacted projects to determine whether undertaking them is in the public interest, or for choosing between two or more mutually exclusive projects. An introduction to BCA for students as well as practitioners, this accessible volume describes the underlying economic theory and legal and philosophical foundations of BCA. BCA provides an objective framework around which discussion, correction and amendment can take place. Stated simply, it is the calculation of values for all the inputs and outputs from a project and then the subtraction of the first from the second. The authors goal here is to take the mystery out of the process. They discuss practical issues of market-based valuation and aggregation, non-market valuation, practical applications of general equilibrium models, issues in discounting, and the impacts of risk and uncertainty in BCA. They also provide a list of resources and case studies looking at ethanol and the use of cellular phones by drivers. Straightforward in style and cutting-edge in coverage, this volume will be highly usable both as a text and a reference. Advanced undergraduates and masters students in public policy, public administration, economics and health care administration programs will find this a valuable resource. It will also be of great use to agencies that perform benefit cost analyses.

Uncertainty in Economics: Readings and Exercises provides information pertinent to the fundamental aspects of the economics of uncertainty. This book discusses ho uncertainty affects both individual behavior and standard equilibrium theory. Organized into three parts encompassing 30 chapters, this book begins with an overview of the relevance of expected utility maximization for positive and normative theories of individual choice. This text then examines the biases in judgments, which reveal some heuristics of thinking under uncertainty. Other chapters consider the effect of restricting trade in contingent commodities to those trades that can be affected through the stock and bond markets. This book discusses as well the individual problem of sequential choice and equilibria, which are built around the notion of sequential choice. The final chapter deals with an entirely different aspect of the economics of information and reverts to the assumption that markets are perfect and costless. This book is a valuable resource for economists and students.

Protected marine species have populations that are depleted, decreasing, or are at-risk of extinction or local extirpation. As of 2015 The International Union for the Conservation of Nature, a global environmental organization, lists approximately 737 marine species worldwide that are considered at risk of extinction. Many are provided legal protection through national laws requiring research and management measures aimed at recovering and maintaining the species at a sustainable population level. Integral to the policy decision process involving the management and recovery of marine species is the consideration of trade-offs between the economic and ecological costs and benefits of protection. This suggests that economics, at its core the study of trade-offs, has a significant role. In the U.S. a somewhat traditional use of economics in protected species research and management has involved cost minimization or cost-effectiveness analyses to help select or prioritize conservation actions. Economic research has also provided estimates of public non-market benefits of recovering species, which can be used in larger management frameworks such as ecosystem based management and coastal and marine spatial planning. Inherent in much of this research, however, are complex biological and ecological relationships in which varying degrees of scientific uncertainty are present. Addressing this type of uncertainty can affect the economic outcomes related to protected species. For example, recent work suggests that increasing scientific precision in biological sampling and models can greatly affect the magnitude of economic benefits to commercial fisheries, while other research suggests that public non-market benefits of species recovery are sensitive to uncertainty about baseline population estimates. Previous research has illustrated the importance of understanding the biological, ecological, and economic aspects of protected species management and recovery. In this research topic we synthesize current protected marine species economic research and expand the discussion on present and future challenges related to protected species economics. The series of manuscripts brings together an array of prominent researchers and advances our understanding of the ecological and economic aspects of managing and recovering protected marine species.