Managing exotic pests under uncertainty: optimal control actions and bioeconomic investigations |
| |
Institution: | 1. Farm Business Management, Lake Region State College, 1801 College Drive N., Devils Lake, ND 58301, USA;2. Department of Agricultural Economics, Kansas State University, 342 Waters Hall, Manhattan, KS 66506, USA |
| |
Abstract: | Using a real options framework in continuous time, we examine two problems associated with the management of exotic pests under uncertainty. First, we analyze the optimal timing of investing in a control action. Given fixed control costs, we obtain a closed-form solution for when to control an exotic pest whose density varies randomly. Second, we define an analytical framework for finding the optimal expenditures for obtaining the relevant bioeconomic data. Our numerical results, based on a wide range of bioeconomic parameters, highlight the importance of accounting for uncertainty and irreversibility when developing simple rules to manage exotic pests. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|