On Economic Cost Minimization Versus Biological Invasion Damage Control

NEW APPROACHES TO THE ECONOMICS OF PLANT HEALTH, Alfons G.J.M. Oude Lansink, eds., Springer, Dordrecht, The Netherlands, 2007

Posted: 3 Jun 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

Recently, Batabyal et al. (2005) have used a queuing model to show that there is a tension between economic cost minimization and inspection stringency in invasive species management in the following sense: Greater (lesser) inspection stringency with a larger (smaller) number of inspectors leads to higher (lower) economic costs. We use a more general queuing model to investigate whether there is, in fact, a tension between cost minimization and inspection stringency. Our theoretical analysis shows that there is no definite answer to this question. Therefore, we use numerical methods and our numerical analysis leads to two conclusions. For many values of the model parameters that delineate the strictness of inspections, there is a tension between cost minimization and inspection stringency. In contrast, for most values of the model parameter that describes the volume of maritime trade handled by the port under study, there is no tension between cost minimization and inspection stringency.

Keywords: Inspection, Invasive Species, Maritime Trade, Queuing Theory, Uncertainty

JEL Classification: Q20, F13

Suggested Citation

DeAngelo, Gregory Joseph and Batabyal, Amitrajeet A. and Kumar, Seshavadhani, On Economic Cost Minimization Versus Biological Invasion Damage Control. NEW APPROACHES TO THE ECONOMICS OF PLANT HEALTH, Alfons G.J.M. Oude Lansink, eds., Springer, Dordrecht, The Netherlands, 2007, Available at SSRN: https://ssrn.com/abstract=990632

Gregory Joseph DeAngelo (Contact Author)

Claremont Colleges - Claremont Graduate University ( email )

150 E. Tenth Street
Claremont, CA 91711
United States

Amitrajeet A. Batabyal

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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