Spatial Price Discrimination in Agricultural Product Procurement Markets PDF Download
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Author: Marten Graubner
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Significant transport costs and spatially distributed supply and processing create oligopsony power in agricultural markets. Price discrimination expressed in the form of partial or complete absorption of freight charges by processors is often observed in these environments, but we understand little about how these pricing decisions are made. Analytical approaches are often intractable. As an alternative, we propose a computational economics approach to analyze a general spatial competition model and study firms' choices of spatial pricing policy. Instead of the commonly presumed free-on-board pricing, we find that buyers choose price discrimination, either through uniform delivered pricing or through partial freight absorption.
Author: Marten Graubner
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Significant transport costs and spatially distributed supply and processing create oligopsony power in agricultural markets. Price discrimination expressed in the form of partial or complete absorption of freight charges by processors is often observed in these environments, but we understand little about how these pricing decisions are made. Analytical approaches are often intractable. As an alternative, we propose a computational economics approach to analyze a general spatial competition model and study firms' choices of spatial pricing policy. Instead of the commonly presumed free-on-board pricing, we find that buyers choose price discrimination, either through uniform delivered pricing or through partial freight absorption.
Author: Goundan, Anatole
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28
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Book Description
Spatial interactions are essential drivers of price transmission mechanisms and may significantly affect any food’s policy outcomes. However, spatial aspects seem to be generally overlooked when analyzing price transmission. This paper attempts to fill this gap by highlighting the usefulness of spatial interaction and models for market integration analysis. A spatial dynamic panel datamodel is presented and applied to Niger’s millet market. Empirical results show that (1) the millet market is partly integrated, (2) locally traded commodities (millet and sorghum) are linked by a cross-commodity price transmission, (3) most imported cereals prices, which for Niger is maize and rice, did not affect the millet market, and (4) no cross-regions price transmissionoccurred for the millet market.
Author: William G. Tomek
Publisher: Cornell University Press
ISBN: 0801471109
Category : Business & Economics
Languages : en
Pages : 484
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Book Description
Published continuously since 1972, Agricultural Product Prices has become the standard textbook and reference work for students in agricultural and applied economics, buyers and sellers of commodities, and policymakers, clearly explaining conceptual and empirical models applicable to agricultural product markets. The new fifth edition uses up-to-date information and models to explain the behavior of agricultural product prices. Topics include price differences over market levels (marketing margins), price differences over space (regionally and internationally) and by quality attributes, and price variability with the passage of time (seasonal and cyclical variations, trends, and random behavior). William G. Tomek and Harry M. Kaiser review and adapt microeconomic principles to the characteristics of agricultural commodity markets and then apply these principles to the various dimensions of price behavior. They also provide an in-depth discussion of prices established for futures contracts and their relationship to cash (spot) market prices; cover the influential roles of price discovery institutions, such as auctions and negotiated contracts, and government policies regulating trade and farms; and discuss the specification, use, and evaluation of empirical models of agricultural prices, placing emphasis on the challenges of doing high-quality, useful analyses and interpreting results.
Author: Jinho Jung
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We estimate the cost of transporting corn and the resulting degree of spatial differentiation among downstream firms that buy corn from upstream farmers and examine whether such differentiation softens competition enabling buyers to exert market power (defined as the ability to pay a price for corn that is below its marginal value product net of processing cost). We estimate a structural model of spatial competition using corn procurement data from the U.S. state of Indiana from 2004 to 2014. We adopt a strategy that allows us to estimate firm-level structural parameters while using aggregate data. Our results return a transportation cost of $0.12 per bushel per mile (5% of the corn price under average distance traveled), which provides evidence of spatial differentiation among buyers. The estimated average markdown is $0.80 per bushel (16% of the average corn price in the sample), of which $0.34 is explained by spatial differentiation and the rest by the fact that firms operated under binding capacity constraints. We also find that corn prices paid to farmers at the mill gate are independent of distance between the plant and the farm, providing evidence that firms do not engage in spatial price discrimination. Finally, we evaluate the effect of hypothetical mergers on input markets and farm surplus. A merger between nearby ethanol producers eases competition, increases markdowns by 20%, and triggers a sizable reduction in farm surplus. In contrast, a merger between distant buyers has little effect on competition and markdowns.
Author: George Norman
Publisher: Taylor & Francis
ISBN: 9780850861211
Category : Business & Economics
Languages : en
Pages : 190
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Book Description
Author: Marc E. McDill
Publisher:
ISBN:
Category :
Languages : en
Pages : 54
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Book Description
Author: Melvin L. Greenhut
Publisher: Durham, N.C. : Duke University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 284
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Book Description
Author: Phillip M. Bishop
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 20
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Book Description
Author: Julien Martin
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Book Description
Author: William G. Tomek
Publisher:
ISBN: 9780801440939
Category : Business & Economics
Languages : en
Pages : 428
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Book Description
In an excellent synthesis of theory and measurement as they relate to agricultural prices, William G. Tomek and Kenneth L. Robinson set out principles for understanding the operation of markets for agricultural products. This heavily revised and updated edition of a classic in the field applies microeconomic theory to the operation of agricultural product markets, covering the distinctive features of their supply and demand and of the pricing institutions (such as auctions and futures markets) through which economic forces affect commodity prices.The book addresses four central topics: principles of price determination; price differences and variability; pricing institutions; and empirical price analysis. Numerous charts, graphs, and tables illustrate the authors' points throughout. The Fourth Edition of Agricultural Product Prices brings its subject into the twenty-first century with information and insights that can be applied to agricultural markets worldwide.
