Using Ex Ante Approaches to Obtain Credible Signals for Value in Contingent Markets: Evidence from the Field

While contingent valuation remains the only option available for measurement of total economic value of nonmarketed goods, the method has been criticized due to its hypothetical nature. We analyze field experimental data to evaluate two ex ante approaches to attenuating hypothetical bias, directly comparing value statements across four distinct referenda: hypothetical, "cheap talk,""consequential," and real. Our empirical evidence suggests two major findings: hypothetical responses are significantly different from real responses; and responses in the consequential and cheap talk treatments are statistically indistinguishable from real responses. We review the potential for each method to produce reliable results in the field.     

国外农产品批发市场发展特点及对我国的启示

通过实地考察,本文对国外农产品批发市场的特点进行了初步的概括和总结,并与国内同类市场的实际情况和行业现状进行对比分析,以期从中得到一些启示。     

State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets

This study tested if the exclusive procuring and pricing policies of two state trading enterprises (STEs) in international malting barley markets could be used in a strategic trade context. The research provided four key findings. First, the global malting barley market operated in a quantity-setting oligopolistic structure during the study years. Second, both STEs and other exporting countries were in Cournot competition and thus made available strategic trade possibilities. Third, initial commodity payments were too high to generate a rent-shifting outcome. Fourth, product differentiation was confirmed, which may have dampened the desire/ability of STEs to pursue a rent-shifting objective.     

The Canadian Beef and Pork Sectors: New Found Relevance of Live Market Information

The structure of price transmission both vertically (between links in the market channel) and horizontally (between market areas) for beef and pork in Canada is examined. The analysis of vertical price transmission indicates that farmgate prices lead retail prices. The hypothesized relationship between retail and farmgate prices is that the farmgate demand curve is shifted by wholesaler anticipation of the retail price changes. Such a situation would place greater importance on the live markets since prices determined in these markets would eventually be reflected in the retail market. The results have further implications for the determination of price margins and related policy issues.     

Buyer Collusion and Efficiency of Government Intervention in Wheat Markets in Northern India: An Asymmetric Structural Auctions Analysis

This article uses auction theory to analyze wholesale markets for wheat in Northern India. This approach enables us to characterize the market in terms of buyer asymmetries, to detect the existence of collusion, and to quantify its impact on market prices. We show that buyer asymmetries exacerbate the downward impact of collusion on prices. The article also considers whether the government paid too much for the wheat it procured at the minimum support price, and shows that for our sample it did not. The article is based on a primary survey of two wholesale markets in North India.     

Genetic Information in Agricultural Productivity and Product Development

Two prominent features of recent changes in agriculture have been the advent of precision breeding techniques and an increase in the level of information netputs in production. This article identifies ways in which these features may complement in expanding the variety of processed products, level of productivity, and rate of change in productivity. Using a martingale concept of information, we identify conditions under which information increases the incentives to invest and engage in product differentiation activities. A theory on how genetic uniformity can enhance the rate of learning through process experimentation, and so the rate of technical change, is developed.     

Information Sharing and Oligopoly in Agricultural Markets: The Role of the Cooperative Bargaining Association

We study incentives for information sharing among agricultural intermediaries in imperfectly competitive markets for farm output. Information sharing always increases expected grower and total surplus, but may reduce expected intermediary profits. Even when expected profits increase with information sharing, intermediary firms face a prisoner's dilemma where it is privately rational to withhold information, given that other firms report truthfully. This equilibrium can be avoided if firms' information reports are verifiable, and if firms commit to an ex ante contract that enforces participation in information sharing. We show how agricultural bargaining legislation can implement such a contract with the bargained farm price representing a sufficient statistic of all information held by intermediary firms.     

Managed Trade in Non-traditional Products: Emerging Issues for Canada's Specialised Livestock Sectors

The specialised livestock industry is poised for excellent growth and development in both Saskatchewan and Canada. … Specialised livestock have the potential to meet market demands in other parts of the world as well as local opportunities for healthy and exotic foods. (Saskatchewan Agriculture and Food, 2000).
… there are now 4000 deer farms in New Zealand. They are running 1.8 million animals, in a country somewhat smaller than Saskatchewan! (Haigh 2000).
There are domestic and export markets for venison and export offers the best returns. Over 80% of Australian-produced venison is now exported … They are large markets with limited Australian market penetration because of the current small size of our industry and our inability to provide the volume required (Mackay 2000).
…the behaviour of new enterprises follow a very predictable pattern. Unfortunately, despite the highly predictable nature of these issues and problems, the same mistakes are made over and over (McKinna 1999).     

Excess Capacity and Asymmetric Information in Developing Country Fisheries: The Malaysian Purse Seine Fishery

Excess capacity poses a problem in many developing country fisheries. These countries often pursue a development strategy aimed at expanding capacity under open access. Sustainable development, however, requires management. Principal-agent issues from asymmetric information between the regulator and fishers, which potentially form serious obstacles to fisheries management, arise in the likely forms of management. This article discusses principal-agent issues and examines the principal-agent moral hazard issue, which is due to divorce of ownership and vessel operations. The article also illustrates a method for estimating capacity when information is limited. The Peninsular Malaysian purse seine fishery forms a case study.     

Using Limited Information to Support the Decision to Launch a New Product in the Fruit Juice Market: A Teaching Case Study

Fresh Juice Incorporated (FJI) is in the process of determining whether it should launch a new fruit juice, Genetically Enhanced (GE) Juice. The GE Juice meets consumers' demands for a tasty, nutritious product and it would be the first new juice product in the last fifteen years. Before FJI decides to launch GE Juice, it must analyze the uncertainty surrounding market size, market share, and price of GE Juice. Finally, if FJI decides to launch GE Juice, then they must decide if they will bottle the juice themselves or outsource this process. This case teaches students how to discuss the strategic implications of launching a new product and develop a net present value and financial feasibility simulation model given limited information.     

New Futures Markets in Agricultural Production Rights: Possibilities and Constraints for the British and Dutch Milk Quota Markets

Farms are increasingly being affected by policies that involve production rights. Because of fluctuations in the prices of these rights in the spot market, farmers face a price risk. Establishing a futures market might enable them to hedge against this price risk. Rights futures have some features that differ from those of traditional commodity futures. This makes them an effective and efficient tool for managing price risk. The implications of these findings will be illustrated for milk quotas in the United Kingdom and The Netherlands. Prior conditions which might make a futures market for milk quotas successful in both countries will be deduced.     

A Place for Water Markets: Performance and Challenges

The 2006 United Nations Human Development Report paints a dismal picture of global water scarcity and the increasing pressures on agricultural water supplies. While it acknowledges that demand-side policies are more effective than supply-side approaches, it remains skeptical of water markets as a means of managing scarce water supplies. This contrasts sharply with the successful implementation of water markets within the United States and other countries. To clarify the debate, this article evaluates the performance of established water markets. It also considers different challenges posed by water markets in developed and developing countries and discusses how countries can overcome these challenges.