TABLE 5

Solution Strategy Pairs and Expected Payoffs; Disease Starts in GL.

CasePricea (dollars/ton) pH,Healthy, pL,Healthy, and penalty pairs (%) pH,Infected pL,InfectedSettingExpected Payoffs
Solution Strategy Pairs GH, GLGH, GL ($1,000/ acre)ENPVT Total
11,912, 1,912 34, 34SimultaneousImNS, ImNS17, 150167
Sequential, GL moves firstImNS, ImNS17, 150167
Sequential, GH moves firstImNS, ImNS17, 150167
22,198, 1,626 40, 28SimultaneousImNS, ImNS35, 121156
Sequential, GL moves firstImNS, ImNS35, 121156
Sequential, GH moves firstImNS, ImNS35, 121156
32,485, 1,339 46, 22SimultaneousImNS, ImNS54, 92146
Sequential, GL moves firstImNS, ImNS54, 92146
Sequential, GH moves firstImNS, ImNS54, 92146
42,771, 1,053 52, 16SimultaneousImNS, ImNS72, 62134
Sequential, GL moves firstImNS, ImNS72, 62134
Sequential, GH moves firstImNS, ImNS72, 62134
53,058, 766 58, 10Social plannerbImNS, ImNS91, 31121
SimultaneousNo control, No control60, 2282
Sequential, GL moves firstNo control, No control60, 2282
Sequential, GH moves firstImNS, ImNS91, 31121
Nash bargainingbImNS, ImNS80, 42121
  • 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.