Solution Strategy Pairs and Expected Payoffs; Disease Starts in GL.
Case | Pricea (dollars/ton) pH,Healthy, pL,Healthy, and penalty pairs (%) pH,Infected pL,Infected | Setting | Expected Payoffs | ||
---|---|---|---|---|---|
Solution Strategy Pairs GH, GL | GH, GL ($1,000/ acre) | ENPVT Total | |||
1 | 1,912, 1,912 34, 34 | Simultaneous | ImNS, ImNS | 17, 150 | 167 |
Sequential, GL moves first | ImNS, ImNS | 17, 150 | 167 | ||
Sequential, GH moves first | ImNS, ImNS | 17, 150 | 167 | ||
2 | 2,198, 1,626 40, 28 | Simultaneous | ImNS, ImNS | 35, 121 | 156 |
Sequential, GL moves first | ImNS, ImNS | 35, 121 | 156 | ||
Sequential, GH moves first | ImNS, ImNS | 35, 121 | 156 | ||
3 | 2,485, 1,339 46, 22 | Simultaneous | ImNS, ImNS | 54, 92 | 146 |
Sequential, GL moves first | ImNS, ImNS | 54, 92 | 146 | ||
Sequential, GH moves first | ImNS, ImNS | 54, 92 | 146 | ||
4 | 2,771, 1,053 52, 16 | Simultaneous | ImNS, ImNS | 72, 62 | 134 |
Sequential, GL moves first | ImNS, ImNS | 72, 62 | 134 | ||
Sequential, GH moves first | ImNS, ImNS | 72, 62 | 134 | ||
5 | 3,058, 766 58, 10 | Social plannerb | ImNS, ImNS | 91, 31 | 121 |
Simultaneous | No control, No control | 60, 22 | 82 | ||
Sequential, GL moves first | No control, No control | 60, 22 | 82 | ||
Sequential, GH moves first | ImNS, ImNS | 91, 31 | 121 | ||
Nash bargainingb | ImNS, ImNS | 80, 42 | 121 |
↵a Recall that prices in cases 1 through 4 are obtained through a mean-preserving contraction of prices in the baseline case (case 5). They represent observed grape prices for Cabernet franc in the Napa County Grape Price District (California Department of Food and Agriculture 2014).
↵b We report the social planner and Nash bargaining solutions only when they are different from the noncooperative solutions.