@article{Atallah:250023,
      recid = {250023},
      author = {Atallah, Shady S. and Gomez, Miguel I. and Conrad, Jon M.},
      title = {Specification of Spatial-Dynamic Externalities and  Implications for Strategic Behavior in Disease Control},
      address = {2016-01},
      number = {642-2016-44093},
      series = {WP},
      pages = {45},
      year = {2016},
      abstract = {We propose a novel, distance- and density-dependent  specification of externalities that captures
spatial  dynamics within and between neighboring land parcels. We  apply the problem to the
short- and long-distance diffusion  and control of an infectious disease in two  privately-owned
and ecologically-connected vineyards. Using  computational experiments to generate individual
and  aggregate payoffs, we show how strategic behavior affects  diffusion of the disease and the
expected present value of  the resulting externality. Our results suggest that  ignoring the withinparcel
spatial dynamics in the model  overestimates the social cost of an externality compared  to
a model that focuses on inter-parcel spatial dynamics  only. We find a U-shaped relationship
between manager  heterogeneity and aggregate payoffs in the presence of an  externality,
suggesting both positive and negative impacts  of increased heterogeneity on strategic behavior
and  welfare.},
      url = {http://ageconsearch.umn.edu/record/250023},
      doi = {https://doi.org/10.22004/ag.econ.250023},
}