An Analysis of Economic Cost Minimization and Biological Invasion Damage Control Using the AWQ Criterion

Posted: 11 Sep 2007

See all articles by Gregory J. DeAngelo

Gregory J. DeAngelo

Claremont Colleges - Claremont Graduate University

Amitrajeet A. Batabyal

Rochester Institute of Technology (RIT) - Department of Economics

Seshavadhani Kumar

Rochester Institute of Technology (RIT) - Department of Mathematics & Statistics

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Abstract

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.

Keywords: AWQ Criterion, Inspection, Invasive Species, Maritime Trade, Queuing Theory

JEL Classification: Q58, L51, D81

Suggested Citation

DeAngelo, Gregory Joseph and Batabyal, Amitrajeet A. and Kumar, Seshavadhani, An Analysis of Economic Cost Minimization and Biological Invasion Damage Control Using the AWQ Criterion. Annals of Regional Science, Vol. 41, pp. 639-655, 2007, Available at SSRN: https://ssrn.com/abstract=1011830

Gregory Joseph DeAngelo

Claremont Colleges - Claremont Graduate University ( email )

150 E. Tenth Street
Claremont, CA 91711
United States

Amitrajeet A. Batabyal (Contact Author)

Rochester Institute of Technology (RIT) - Department of Economics ( email )

92 Lomb Memorial Drive
Rochester, NY 14623-5604
United States
585-475-2805 (Phone)
585-475-5777 (Fax)

HOME PAGE: http://people.rit.edu/aabgsh

Seshavadhani Kumar

Rochester Institute of Technology (RIT) - Department of Mathematics & Statistics ( email )

85 Lomb Memorial Drive
Rochester, NY 14623-5603
United States

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