MULTILATERAL GOVERNANCE OF FISHERIES: MANAGEMENT AND COOPERATION IN THE WESTERN AND CENTRAL PACIFIC TUNA FISHERIES

The tuna resources of the Western and Central Pacific are the world's largest and most valuable fisheries of their type and are of significant economic importance to the Pacific island countries through whose waters they migrate. Two major concerns exist with the current governance of this fishery. First, Pacific island countries receive only a small share of the resource rents from the tuna fisheries. Second, the current management structure of the fisheries will not ensure the long-term sustainability of the resources. This paper derives a model to show that the sustainability of the resource can be improved when a single policymaker acts as Stackelberg leader and sets a tax, or an equivalent quantity instrument, to maximize rents from the resource. A practical institutional mechanism is presented that mimics the model's rent maximization outcome and that offers substantial benefits to both Pacific island countries and distant water fishing nations.Resource /Energy Economics and Policy,

Joint Labor-Management Training Programs for Healthcare Worker Advancement and Retention

[Excerpt] Filling vacancies and retaining workers in shortage areas such as nursing and other allied health occupations remains a challenge in today’s healthcare industry. At the same time, low-wage workers in the healthcare industry often lack the educational credentials necessary to move into higher-paying occupations. This study seeks to understand the role of multi-employer joint labor-management healthcare worker training in meeting the needs of employers for career ladder advancement in their incumbent workforce. The study focuses on hospital employers and their experience with strategies for the advancement of low-wage and entry level workers into healthcare career pathways

Behavioral economics as applied to firms: a primer

We discuss the literatures on behavioral economics, bounded rationality and experimental economics as they apply to firm behavior in markets. Topics discussed include the impact of imitative and satisficing behavior by firms, outcomes when managers care about their position relative to peers, the benefits of employing managers whose objective diverges from profit-maximization (including managers who are overconfident or base pricing decisions on sunk costs), the impact of social preferences on the ability to collude, and the incentive for profit-maximizing firms to mimic irrational behavior.Behavioral economics, bounded rationality, experimental economics, oligopoly, antitrust

Contractibility and the Design of Research Agreements

We analyze how variations in contractibility affect the design of contracts in the context of biotechnology research agreements. A major concern of firms financing biotechnology research is that the R&D firms might use the funding to subsidize other projects or substitute one project for another. We develop a model based on the property-rights theory of the firm that allows for researchers in the R&D firms to pursue multiple projects. When research activities are non-verifiable, we show that it is optimal for the financing company to obtain the option right to terminate the research agreement while maintaining broad property rights to the terminated project. The option right induces the biotechnology firm researchers not to deviate from the proposed research activities. The contract prevents opportunistic exercise of the termination right by conditioning payments on the termination of the agreement. We test the model empirically using a new data set on 584 biotechnology research agreements. We find that the assignment of termination and broad intellectual property rights to the financing firm occurs in contractually difficult environments in which there is no specifiable lead product candidate. We also analyze how the contractual design varies with the R&D firm's financial constraints and research capacities and with the type of financing firm. The additional empirical results allow us to distinguish the property-rights explanation from alternative stories, based on uncertainty and asymmetric information about the project quality or research abilities.

Climate Change and the Limits of the Possible

Climate change looks to be more than just another environmental problem. It threatens to test the limits of our dominant ways of understanding and solving, not just environmental problems, but problems of political economy generally. Climate change has distinctive temporal and spatial features – how long it takes to unfold and the ways in which its effects are distributed across the globe – which may outstrip the capacity of our basic principles of economic and political decision-making. If so, then understanding the issue in a static way may ensure that we expect to fail in addressing it and are inarticulate about our prospects for success. That is, if we assume that economic and political decisions reflect the present distribution of self-interest within the existing structure of rules and institutions, we may be unable to see our way beyond the problem, because it so neatly frustrates the problem-solving power of our current arrangements. We may need, instead, to adopt a dynamic view of political econom