SUNK COSTS AND RESOURCE MOBILITY: IMPLICATIONS FOR ECONOMIC AND POLICY ANALYSIS

Bradford L. BARHAM () and Jean-Paul Chavas ()

Staff Papers from University of Wisconsin Madison, AAE

Abstract: The implications of sunk costs for many key questions in agricultural economics have yet to be explored. This paper uses a dynamic model of investment behavior to explore how sunk costs can shape market outcomes in ways that might not match predictions of standard competitive models. Applying the model to several key issues in agricultural markets and international trade offers new perspectives that challenge conventional wisdoms. Institutional and policy innovations are also examined for their potential to improve welfare outcomes when sunk costs impede factor mobility.

Date: 1997-04
View list of references

Downloads: (external link)
http://agecon.lib.umn.edu/wis/stpap410.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 /wis/stpap410.pdf (http://agecon.lib.umn.edu/wis/stpap410.pdf [302 Found]--> http://ageconsearch.umn.edu/wis/stpap410.pdf)

Related works:
Working Paper: Sunk Costs and Resource Mobility: Implications for Economic and Policy Analysis (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wop:wiaesp:410

Access Statistics for this paper

More papers in Staff Papers from University of Wisconsin Madison, AAE
Address: University of Wisconsin, Dept. of Agricultural and Applied Economics, 427 Lorch Street, Madison, WI 53706
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().