"In a rather confined set of circumstances, findings indicate it is always in the best interest of the food company to comply with activists' demands. More frequently, however, there will be cases where compliance is not optimal, depending on the size of the expected effect of protest, cost of defending against protest, and the cost of protest to the activist."
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 107 Document Number: C10135
Notes:
search from AgEcon., ERI Study Paper 95-13. September 1995 10 pages; Adobe Acrobat PDF 57K bytes, In a two-period model, economists such as K.J. Arrow, A.C. Fisher, and C. Henry, have shown that when development is both indivisible and irreversible, a developer who ignores the possibility of obtaining new information about the outcome of such development will invariably underestimate the benefits of preservation and hence favor development. In this note, I extend the AFH analysis in two directions. I model the land development problem in a dynamic framework, explicitly specifying an information production function. In such a setting, I then ask and answer the question concerning when development should take place. JEL Classification: D82, Q20 Key words: development, dynamic, information, uncertainty
Forthcoming in Journal of Environmental Management
