An Analysis of Economic Cost Minimization and Biological Invasion Damage Control Using the AWQ Criterion
Gregory J. DeAngelo
Rensselaer Polytechnic Institute (RPI) - Department of Economics
Amitrajeet A. Batabyal
Rochester Institute of Technology
Rochester Institute of Technology (RIT) - Department of Mathematics & Statistics
DeAngelo et al. (2006) have recently used the AWS criterion in a M/G/1 queuing model to show that there is no necessary tension between economic cost minimization and inspection stringency in non-native species management. In this paper, we use an alternate cost criterion (AWQ criterion) to investigate the generality of this central result in DeAngelo et al. (2006). Our theoretical analysis shows that there is no unambiguous answer to this question. Therefore, we use numerical methods and our numerical analysis leads to two findings. First, for many values of the model parameters that describe the strictness of inspections, there is a tension between cost minimization and inspection stringency. Second, for most values of the model parameter that depicts the volume of maritime trade handled by the seaport under consideration, there is no tension between cost minimization and inspection stringency.
Number of Pages in PDF File: 28
Keywords: AWQ Criterion, Inspection, Invasive Species, Maritime Trade, Queuing Theory
JEL Classification: Q58, L51, D81working papers series
Date posted: January 16, 2006
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