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This article considers whether generic advertising lowers the differentiation among competing brands of the same good. Analytical results show that if the benefits from generic advertising from increased demand are outweighed by the costs from lower product differentiation then high–quality producers will not benefit from generic promotion. Hypotheses are tested empirically under a conditional–logit approach using retail–market sales and advertising data for the U.S. prune industry. Results from this study provide evidence that generic advertising has a slight differential effect on the perceived qualities of different brands. 相似文献
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Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs 总被引:1,自引:0,他引:1
Julian M. Alston John W. Freebairn & Jennifer S. James 《American journal of agricultural economics》2001,83(4):888-902
Profits from generic advertising by a producer group often come partly at the expense of producers of closely related commodities. The resulting tendency toward excessive advertising is exacerbated by check-off funding. To analyze this beggar-thy-neighbor behavior we compare a scenario where different producer groups cooperate and choose their advertising expenditures jointly to maximize the sum of profits across the groups, and a scenario where they optimize independently. In an illustrative example using 1998 data for U.S. beef and pork, the noncooperatively chosen expenditure on beef and pork advertising is more than three times the cooperative optimum. 相似文献
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Marketing assistance loan (MAL) and loan deficiency payment (LDP) programs differ in their treatment of transportation costs. Marketing decisions are analyzed under these programs when producers are differentiated by location with respect to the terminal market. Under certain conditions, a complete characterization of equilibrium is developed. The proposed model broadly fits several "stylized" facts about producer enrollment in these programs. If LDPs are uniform at all locations, LDP programs do not interfere with marketing decisions. MAL programs distort the optimal marketing pattern by providing incentives to store for producers who should be among the first ones to supply the market. 相似文献
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Farm programs influence the parameters of typically estimated supply functions. We develop and apply an approach that uses detailed information about farm program incentives and constraints to identify underlying structural acreage response parameters when the data reflect behavior under complex government commodity programs. We illustrate the approach with data on rice acreage response to market price in the United States. For U.S. rice, estimates that fail to appropriately incorporate the program rules under which market data were generated are three to four times smaller than the structural parameters that are useful for most policy analysis or projections under alternative policies. 相似文献
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The estimated effects of promotion on demand are often small and insignificant. Yet, the estimated effects of promotion on industry profit are often positive and large. This puzzle is explained by demonstrating that (in)significance of promotion in a demand equation does not imply, and is not implied by, (in)significance of promotion in an industry profit equation. A Monte Carlo example is provided. The econometric modeling implications are discussed. The short-run marginal effect of a dollar of generic beef promotion on slaughter cattle industry profit is estimated to be about $9.84 with a standard error of 3.77 for 1997. 相似文献
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Optimal Storage by Crop Producers 总被引:2,自引:0,他引:2
Paul L. Fackler & Michael J. Livingston 《American journal of agricultural economics》2002,84(3):645-659
When post–harvest marketing strategies are restricted by disallowing speculative purchases, sales out of storage becomes an irreversible decision and the dynamic marketing problem becomes analogous to the optimal exercise of a financial option. The optimal marketing strategy is to hold at low prices and to sell at high prices with a cutoff price function marking the boundary between low and high prices. A method for estimating the cut–off price function is developed and applied to Illinois soybean prices. The decision rule is demonstrated to result in substantial gains from storage. 相似文献
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John M. Crespi Jennifer S. James 《The Australian journal of agricultural and resource economics》2007,51(4):445-457
The beggar-thy-neighbour aspect of commodity advertising means that benefits to one commodity from advertising come at the expense of other commodities. The effect can be mitigated by cooperation among groups as shown by Alston, Freebairn and James (AFJ). A drawback to AFJ's analysis is that some cooperative outcomes require side payments from one producer group to another. This paper offers a bargaining solution as an alternative to cooperation in the case where cooperative side payments would be needed. We show that while bargaining without side payments is not as effective as cooperation at reducing beggar-thy-neighbour effects, it is a welfare improving alternative to non-cooperation and is likely more practical in many situations. 相似文献
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Kent D. Messer Todd M. Schmit Harry M. Kaiser 《American journal of agricultural economics》2005,87(4):1046-1060
Given the uncertain legal status of generic advertising programs for agricultural commodities, alternative voluntary funding institutions are investigated that could provide a high level of benefits to producers. This experimental study simulates key economic and psychological factors that affect voluntary producer contributions to generic advertising. The results suggest that producer referenda play a critical role in increasing contributions and that producer surplus is maximized by a provision point mechanism instituted by producer referendum with thresholds ranging from 68% to 90%, and expected funding from 47% to 77% of the time, depending on the level of advertising effectiveness. 相似文献
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We investigate revealed political market power reflected in the pattern of price discrimination by end use that is the hallmark of U.S. milk marketing orders. We show that the pattern of prices that would maximize producer profits, if producers operated a cartel with monopoly power in a regional market, is far above actual government-set price differentials between milk used for fluid products and that used for manufactured products. The pattern of actual price differentials is consistent with political welfare weights for producers relative to consumers that are small compared to the weights that would yield maximum producer profits. 相似文献
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Agricultural promotion groups (APGs) promote the economic welfare of agricultural producers by financing generic advertising and promotion activities intended to expand demand for their commodities in hopes that the benefits will more than cover the cost. A review of the most recent evaluations of 27 major U.S. APG generic advertising and promotion programs conducted by many different researchers using widely different techniques concludes that that those programs have effectively enhanced the profits of their respective stakeholders and generated high rates of returns to the dollars invested in those programs. Importantly, this study finds that the success of those programs in supporting and growing their respective sectors of agriculture has spilled over to the general economy. The programs have created an important multiplier effect through the economy. In the process, jobs have been created; income has been generated; and economic growth has occurred. 相似文献
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The Effect of Farmland Preservation Programs on Farmland Prices 总被引:5,自引:0,他引:5
Government agencies in urbanizing areas are increasingly utilizing purchase and transfer of development rights programs to preserve farmland and protect local farm economies. This paper tests the effect of development restrictions imposed by permanent easement sales on farmland sales prices, using Maryland data. We correct for selectivity bias due to the voluntary nature of these programs in estimating hedonic sales equations. Although preserved parcels' actual land values are lower, the effect of the restrictions is not statistically significant. These findings may encourage additional participation in preservation programs or justify reductions in the easement prices paid by agencies. 相似文献
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Muhammad Ali Jan 《Journal of Agrarian Change》2019,19(2):225-248
This paper questions the orthodox Marxist view of merchant capital as “unproductive,” by highlighting the importance of traders in subsuming the countryside to the logic of capital. However, it also argues that in order to properly understand the role played by traders in agrarian change, critical Marxist scholarship on merchant capital needs to recognize the complex marketing systems in which traders and farmers operate. These markets have their own internal relations, organizational and institutional logic which in turn is tied to the specificity of the commodity. Using wheat markets in colonial Punjab as a case study, it then utilizes the framework of complex marketing systems to highlight the range of firms and farms that operated in these markets; the importance of personal relations and informal institutions of family, caste, and religion for establishing trust; and the class stratified nature of market participants. It was from within these informally organized markets that commercial capital first emerged in colonial Punjab. By creatively combining the concept of commercial capital with markets as complex systems, it hopes to provide a richer framework for the study of agrarian change in diverse contexts. 相似文献
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Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming 总被引:2,自引:0,他引:2
Positive Mathematical Programming (PMP) has become a popular method for regional production models. The standard approach estimates cost (or production) functions for each land-use activity separately from each other. This means that the same crop grown under two technologies is treated as if it were two separate crops, which may lead to unsatisfying results, for example, if agri-environmental programs are modeled. We present an extended version of PMP that leads to more plausible results than the standard version in such cases. The extended method is applicable to other problems where differences in the elasticity of substitution between activities are important. 相似文献
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AbstractGlobally, over half of all sorghum is used for human consumption. Yet sorghum is largely unknown as a food in the United States and other developed countries. Recently, the U.S. demand for sorghum as a gluten-free, non-GMO input to food products has been growing. At the same time, the use of sorghum for food and industrial uses is being promoted by the producer-financed United Sorghum Checkoff Program (USCP). How much of that growth can be attributed to the USCP promotion? Has the investment been profitable for sorghum producers? This study finds that USCP promotion programs have resulted in a 4% increase in the sales value of sorghum for that purpose and a 1% increase in total sorghum farm revenue. The farm level benefit-cost ratio is estimated at between 5.8 and 7.1 in terms of producer profit per dollar spent on promotion. 相似文献