Implications of Realization Uncertainty on Random Utility Models: The Case of Lottery Rationed Hunting

Conditional multinomial logit (MNL) models are often used to estimate the value of nonmarket resources under the assumption that consumer choices will be realized with certainty. The conditional MNL may not be appropriate when choices made may not be realized with certainty, such as when rationing mechanisms are used as a means of managing nonmarket resources. Two models that address this issue, developed by Boxall (1995) and Rouwendal (1989), are compared here to estimate welfare measures for moose hunting in Newfoundland. The results from these two models differ significantly from the results of a simple conditional MNL model .
Les modèles logit multinomiaux conditionnels (MNL) sont souvent utiliés pour calculer la valeur de ressources non marchandes, dans une hypothèse de départ voulant que les choir du consommateur sont assurés d'être réalisés. Ce genre de modèle peut toutefois ne pas convenir lorsque les choix fait ne sont pas assurés d'être pleinement réalisés, comme dans les cas où des mécanismes de rationnement sont imposés comme moyen de gérer ces ressources non marchandes. Nous comparons deux modèles conçus et mis au point, l'un par Boxall (1995), l'autre par Rouwendal (1989), pour estimer les mesures des effets socio-économiques d'une réglementation de la chasse de l'orignal a Terre-Neuve. Il apparaêt que ces deux modèles aboutissent à des résultats significativement différents de ceux obtenus par un modèle MNL conditionnet simple .     

Negligent hiring: Reducing the risk

In recent years, the responsibility of employers to hire people who are not dangerous or violent has been heightened by the tort, negligent hiring. The courts have ruled that certain employers owe a special duty to employees and third parties (e.g., customers or clients) to protect them from the harmful or criminal acts of other employees. This article contrasts negligent hiring to respondent superior and negligent entrustment, describes the components of negligent hiring, and reviews important legal cases. The article also discusses how employers can minimize the risk of negligent hiring through prudent human resource practices.     

Teaching Net Present Value Analysis: Returns-to-Assets versus Returns-to-Equity

We survey textbooks from agricultural economics and other subject matter areas to determine their treatments of the returns-to-assets versus returns-to-equity methods for determining the net present value of investment projects. Textbook authors disagree about the appropriate method, often give conflicting advice as to how a given method should be applied, and do not show how the results of the two methods can be reconciled. We provide a consolidated discussion of the circumstances under which the two methods produce the same net present value.     

Influence of strategies and heuristics on farmers' response to change under uncertainty

Hierarchical Decision Models of woolproducers' decisions provide unique insights into the impact of major price changes. Producers' lagged response in some contexts appear to be due to the ambiguous decision environment they face, their strategic goals and responses to that environment apart from lags caused by factors such as attitude to risk, expectations adjustment, adjustment costs and learning costs. Much of the response to major price changes comes from strategic decisions to change enterprises rather than marginal changes to existing enterprises. In ambiguous environments, methods may need to be found that incorporate simplifying behavioural rules and strategies.