Why organic food in Germany is a merit good

The conventional view of welfare economics is that subsidies for organic food are inefficient. This paper challenges this view and argues that subsidies for organic food may be justified by the concept of individualistic merit goods. Therefore, the concept of individualistic merit goods is briefly reviewed. Market preferences and reflective preferences for organic food in Germany are described. It is then shown how they relate to political preferences. Finally, it is argued how economic theory in general and food policy in particular should take account of the existence of merit goods.     

Fairness and food choice

Although experimental studies have reported a wide array of other-regarding behavior, the pervasiveness of such behavior in the field is an open question. Using a stated-preference experiment, we first estimate people’s preferences, when purchasing food products, for the distribution of benefits accruing to participants in the food supply chain. Although none of the existing fairness models exhibit much predictive power, we find that people are in-fact concerned about the distribution of benefits resulting from food purchases, and that modifications to the models to fit the food context significantly improves explanatory power. Finally, we find that the measured preferences, along with elicited beliefs are significant predictors of people’s willingness-to-pay a premium for organic food.     

An integrated model for analyzing the development of the 4G telecommunications market in Taiwan

Previous studies of development trends in the telecommunications industry have estimated market potential but have seldom integrated analyses of customer preferences and macro-environmental factors (political, economic, social, and technological analyses). In order to more accurately analyze 4G technological trends and market penetration and provide implications for businesses and policymakers, we use conjoint analysis to analyze customers' preferences for telecommunications technology and integrate the results with data from scenario analysis and the Delphi method to address possible scenarios for the development of 2G, 3G, Worldwide Interoperability for Microwave Access (WiMAX), and long-term evolution (LTE) in Taiwan. We then use the innovation diffusion model to forecast the sales volume for these four technologies in Taiwan over the next 10 years. Finally, we provide suggestions for policymaking and strategic actions for 4G stakeholders.     

Consumers’ willingness-to-pay for organic conversion-grade food: Evidence from five EU countries

In recent years, in overall value, the EU has become a net importer of organic food to supply increasing demand. Financial support for farmers during the conversion period has been made to help expand organic production as this was seen as a barrier to conversion. Meanwhile, farmers have been marketing products produced in this conversion period and labelled as such, the extent to which is described here for the UK, Portugal, Denmark, Ireland and Italy. Consumers’ attitudes towards, and willingness-to-pay for, conversion-grade food in these countries is examined. It was found that consumers would be prepared to pay a premium for conversion-grade produce of around half the premium for organic produce with vegetables attracting a higher premium than meat. Finally, the potential of policies for marketing conversion-grade products to encourage more conversion is examined, together with barriers to achieving this. It is concluded that barriers to marketing such products, particularly from retailers, will be formidable. Thus, alternative policies are suggested.     

The implementation of organic principles and values in the European Regulation for organic food

The paper is based on selected findings of the research project EEC 2092/91 (Organic) revision. It contributes to an improved understanding of the core ethical values associated with and principles of organic farming, analyses reference to such values in the European Regulation (EEC) 2092/91 and its ongoing revision, and contrasts them with current practice of organic agriculture. An analysis of differences in the implementation of the Regulation by national governments and private standards is presented. Ethical values are per se in need of interpretation, so the final section sets out procedural issues arguing for a deliberative model of decision-making, when aiming to achieve a coherent integration in the structure of a regulation.     

Modeling approaches for the design of resilient supply networks under disruptions

This paper studies various modeling approaches to design resilient supply networks (SN) for the location-transportation problem under uncertainty. The future environment of the SN is shaped by random demands, and by disruptions perturbing depots capacity and ship-to-point demand processes. The paper proposes several stochastic programming models incorporating alternative resilience seeking formulations. A generic approach to model SN disruptions, and to elaborate and evaluate SN designs is also proposed. Experiments are made to compare the SN design models formulated, and recommendations are drawn on the approach to use to design effective and robust supply networks.     

Putting their money where their mouths are: Consumer willingness to pay for multi-ingredient,processed organic food products

In response to dramatically increasing adoption in consumer markets, the National Organic Program (NOP) initiated novel labeling standards for food products in the US in 2002. This program is a particularly relevant standardization effort for multi-ingredient processed foods. Rather than a simple binary message (organic or not), gradations of organic content are now codified. No existing published study evaluates consumer willingness to pay or motivation to purchase in response to such a rich organic label. This article presents evidence of the impact of the NOP through analysis of data collected in seven central Ohio, USA grocery stores. Results suggest that consumers are willing to pay premium prices for organic foods, even those with less than 100% organic ingredients. The magnitudes of WTP premia varied significantly among consumer groups, suggesting that targeted marketing may be effective for organic merchandisers.     

Modelling trends in food market integration: Method and an application to Tanzanian maize markets

Pushed by increasing availability of price data and extensive market liberalisation efforts in many developing countries, research on food market integration has evolved rapidly over the last two decades. Empirical methods to measure market integration diverged in two directions: on the one hand, there is the parity bounds model (PBM) using a switching regressions technique, while on the other hand the use of threshold autoregressive (TAR) models has been proposed. This article provides a discussion on the two methods and argues that TAR models are better able to capture the dynamics of the arbitrage process underlying interconnected markets. Furthermore, we extend the standard TAR model to include a time trend in both the threshold and the adjustment parameter. Using weekly maize price data on seven selected markets in Tanzania, we illustrate how both transaction cost and the speed of adjustment have changed during the nineties.     

Power in the market for Medi-Cal services

The California Medicaid Reform Act of 1982 resulted in a shift in power from the supply to the demand side of the Medi-Cal market. We find some evidence that strategic behavior by hospitals in the subsequent period may have countered the erosion of supplier market power. This study conducts an empirical assessment of market power in markets for Medi-Cal services, in the year reforms were first implemented (1983) and six years later. Multihospital chain presence is found to have a positive and statistically significant impact on market power, and to vary by chain ownership type.     

The character of demand in mature organic food markets: Great Britain and Denmark compared

We investigate the organic food market in two selected European countries, Great Britain and Denmark, identifying main differences and similarities. We focus particularly on consumer perceptions and priorities, labelling schemes, and sales channels as a basis for assessing market stability and prospects for future growth. We employ a unique set of household panel data that includes information on stated values and concerns as well as registered purchasing behaviour. Most organic food on both markets is produced and processed by large-scale industrialised units and distributed through mainstream sales channels, consumer confidence being sustained at present by organic labelling schemes that appear to function well. However, a parallel market, based on the supply of goods through various direct sales channels to heavy users, prevails. We find that organic food purchase decisions are primarily motivated by ‘private good’ attributes such as freshness, taste and health benefits, attributes that may be perceived as being compatible with modern production and sales structure. Mature markets for organic foods nevertheless appear to be vulnerable to consumer dissatisfaction, particularly among heavy users of organic food products.     

欧洲药品包装市场的发展趋势

据估计，整个欧洲(包括东欧)的药品包装材料市场年销售额达32．46亿美元。主要的包装形式是容器和纸板箱，每种各占总销售额的1/4：其次是水泡眼包装(包括PVC条和小袋)，约占22％；其余的由瓶封、标签和其他类别的药物传输系统所占有。就材料而言，纸和纸板销售额占37％，塑料销售额占28％，金属销售额占26％，玻璃销售额仅占9％。     

Brand equity in the business-to-business market

Brands have been developed by consumer companies but have been slow to develop in business-to-business marketing. This article explains the concept of brand equity in a specific industrial marketing setting. In addition, the sources of brand equity are investigated as well as the appropriate communications strategy and the relative importance of brand relative to other purchase criteria. The research method used was a conjoint analysis experiment. The subjects were decision-making unit (DMU) members of industrial companies in South Africa that purchase medium-voltage electrical equipment. Research results suggest that while brand equity has a role to play, price and delivery were more important. However, a price premium can be obtained when a company has high brand equity. Implications for managers are discussed.     

The quality of food risk management in Europe: Perspectives and priorities

In this paper, we address the issue of food risk management as practised in Western Europe. We begin by considering how food risks are managed, and then go on to consider how well they are managed. There are multiple answers to the ‘how well’ question, which are related to the varied perspectives of the different key stakeholders – from the food risk managers and producers, to the general public and the media. Consequently, there is no clear answer to the question of quality. What our review does identify is two priorities relevant to our understanding of effective food risk management: first, a need for further research to determine the source and nature of the different evaluative perspectives, and second, a need for the key stakeholders to appreciate and understand the alternative perspectives in order to enhance the effectiveness of the food risk management process.     

北美食品用塑料硬包装市场分析

据美国康涅狄克州Norwalk专门从事工业研究和市场分析的Business communication company Inx（商务通讯公司，缩写BCC）新出版的专题研究报告。食品硬包装。（Rigid Food Packaging）提供的数据，2004年北美食品用塑料硬包装总用量达4673万吨，预计2008年将超过618万吨。其间年均增长率（AAGR）为58％。     

Dynamics of food policy formulation in the USA

Examination of the dynamics of food policy formulation in the USA reveals a series of intriguing contrasts. As an example of pluralist decision making, it is unequalled in the sheer number and variety of actors and interests which it encompasses. This article analyses four principal generic elements of the food policy process: its ideological underpinnings; its policy settings; its substantive components; and, its foreign-domestic linkages. The profound changes which have occurred in the Washington political climate are also considered in terms of their implications for food-related policies in both the domestic and international arenas.     

The influence of secondary production on industry definition in the extended vertical market model

Secondary production is defined and its role in the estimation of an extended vertical market model b examined. Two impacts on the subject industry are identified, called primary product dominance and primary product focus. A simultaneous equations model consisting of a profit equation and two secondary production equations is estimated using data from the interindustry transactions accounts. The profit equation captures the impact on industry profit of secondary production and of extended market structure. The dominance equation captures the relationship between secondary production and industry profit and scale of production. The focus equation captures the relationship between secondary production and industry profit and excess capacity. The model is estimated for all industries, and the common specification is then applied to industries grouped by type.     

Consumer preferences and the international harmonization of organic standards

Harmonization of technical standards is often advocated as a means to remove technical barriers that reduce the welfare gains available from international trade. Organic standards are not currently harmonized internationally. If domestic organic standards reflect consumer tastes, and consumers have strong preferences for those standards, then harmonization to a common standard may reduce the benefits consumers receive from organic products. Through a consumer survey, conjoint analysis was used to explore the preferences of consumers in the US, the UK and Canada for organic food. The results suggest that consumers in the three countries do not have a strong attachment to the current national organic standards and that international harmonization may be a legitimate food policy goal.     

Net Neutrality in Europe: Desperately seeking a market failure

Net Neutrality has become the focus of attention in the regulatory debate on the Internet. This article attempts to strip down the debate to its bare essential. It identifies two main types of Net Neutrality obligations that have been put forward and assesses what type of potential concerns they may be designed to address. It concludes that while some of these concerns may be important it remains doubtful (at least in Europe) that an ex ante per se rule, such as those proposed under the Net Neutrality term, is the best way to address them.     

Joint determination of inventory replenishment and sales effort with uncertain market responses

An optimal joint operational and marketing decision is crucial for robust supply chain management. This paper addresses concurrent determination of inventory replenishment and sales effort decisions such as price, incentives to salesforce, and short-term promotions, or a combination of them. Market responses to sales efforts are typically highly uncertain, and demand in each period has its distribution dependent on the selected sales effort. In each period a replenishment order may be issued, which incurs both fixed and variable ordering costs, and at the same time the sales effort is also determined, the execution of which may incur costs. For such a model, the previously developed methods which are used for the joint inventory-pricing models become inadequate. A computational procedure for obtaining an optimal joint policy is addressed, and the conditions for the optimality of that policy are identified.