The role of collective action in the marketing of underutilized plant species: Lessons from a case study on minor millets in South India

Underutilized plant species are generally defined by their unexploited economic potential, making them an appropriate focus for market development. This paper analyses the role of collective action in the process of market development for minor millets, an underutilized plant species, in the Kolli Hills of Tamil Nadu, India. Based on a series of focus group discussions, we analyze the role and involvement of self-help groups in the minor millet marketing chain recently set up by the M.S. Swaminathan Research Foundation. We then compare the role of collective action in this new market with the cases of marketing chains for cassava and organic pineapples, two cash crops with expanding production in the same area. Our analysis shows the critical role of collective action as a necessary but not sufficient condition for the successful commercialization of underutilized plant species for the benefit of the poor and the conservation of agro-biodiversity.     

Rejecting New Technology: The Case of Genetically Modified Wheat

Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology.     

A comment on “School choice: An experimental study” [J. Econ. Theory 127 (1) (2006) 202-231]

We show that one of the main results in Chen and Sönmez (2006, 2008) [6] and [7] does no longer hold when the number of recombinations is sufficiently increased to obtain reliable conclusions. No school choice mechanism is significantly superior in terms of efficiency.     

The collective action problem: Within-group cooperation and between-group competition in a repeated rent-seeking game

This paper analyzes the ability of group members to cooperate in rent-seeking activities in a context of between-group competition. For this purpose, we develop an infinitely repeated rent-seeking game between two groups of different size. We first investigate Nash reversion strategies to support cooperative behavior in both groups, before analyzing double-edge trigger strategies which support cooperation in one group only. These last strategies have the property that cheating on the agreement in the cooperative group is followed by non-cooperation in this group and cooperation in the rival group. The main conclusion is that the set of parameters for which cooperation can be sustained within the larger group as a subgame perfect outcome is as large as that for which cooperation can be sustained in the smaller group. Hence, in contrast to Olson?s (1965) celebrated thesis, but in accordance with many informal and formal observations, larger groups can be as effective as smaller groups in furthering their interests.     

Cross country maize market linkages in Africa: integration and price transmission across local and global markets

In order to study short‐run price shock propagation, we model twenty seven Sub‐Saharan Africa (SSA) domestic maize markets within a Global Vector Autoregression framework. The main purpose is to fully embed multilateral trade flows as a way to better structure local price transmission dynamics and interdependencies, and get a more comprehensive picture of food price shocks propagation. We found significant between‐country market contagion and prompt regional price shock propagation when trade connection exists. Yet, the integration of SSA domestic maize markets within the continent and with global markets remains generally weak. Furthermore, under regular market conditions, most local price series appear to be more responsive to regional neighbors than to global shocks.     

Assessing the Implementation Effects of the Biosafety Protocol's Proposed Stringent Information Requirements for Genetically Modified Commodities in Countries of the Asia Pacific Economic Cooperation

We analyze the potential effects of a generalized implementation of the Cartagena Protocol on Biosafety's proposed stringent information requirements on countries, members of the Asia Pacific Economic Cooperation (APEC). This rule would request all traded shipments containing living modified organisms intended for food, feed, or processing to carry a label with the list of precise genetically modified (GM) events in the shipments. We find that the benefits of such requirements are largely debatable and that this regulation would add significant implementation costs for importers of GM crops, for Protocol members adopting new GM crops, and for countries ratifying the Protocol.     

Alternative to beta coefficients in the context of diffusions

We develop an alternative to the beta coefficient of the CAPM theory. We show the link between this notion and the Wiener chaos expansion of the underlying processes. In the setting of Markov diffusions, we define the drift-neutral beta, which is the quantity of benchmark such that the resulting portfolio is immune to an infinitesimal change of drift on the Brownian motion driving the benchmark. Our approach yields a coefficient which in many practical cases depends on the initial values of both the portfolio and its benchmark. It can also be used to take into account extreme risks and not only the variance. We study several classical diffusion processes and give a full analysis in the case of Jacobi processes. Examples with credit indices show the efficiency of the method in hedging a portfolio.     

Multi-step forecasting in emerging economies: An investigation of the South African GDP

To forecast at several, say h, periods into the future, a modeller faces a choice between iterating one-step-ahead forecasts (the IMS technique), or directly modeling the relationship between observations separated by an h-period interval and using it for forecasting (DMS forecasting). It is known that structural breaks, unit-root non-stationarity and residual autocorrelation may improve DMS accuracy in finite samples, all of which occur when modelling the South African GDP over the period 1965–2000. This paper analyzes the forecasting properties of 779 multivariate and univariate models that combine different techniques of robust forecasting. We find strong evidence supporting the use of DMS and intercept correction, and attribute their superior forecasting performance to their robustness in the presence of breaks.     

Endogenous transfers in the Prisoner's Dilemma game: An experimental test of cooperation and coordination

We test a two-stage compensation mechanism for promoting cooperation in Prisoner's Dilemma games. Players first simultaneously choose binding non-negative amounts to pay their counterparts for cooperating, and then play the induced game knowing these amounts. In our games, all payment pairs consistent with mutual cooperation in subgame-perfect equilibrium transform these games into coordination games, with both mutual cooperation and mutual defection as Nash equilibria in the second stage. When endogenous transfer payments are not permitted, cooperation is much less likely. Mutual cooperation is most likely when the (sufficient) payments are identical, and it is also substantially more likely with payment pairs that bring the mutual-cooperation payoffs closer together. Both the Fehr–Schmidt and Charness–Rabin models predict that transfers that make final payoffs closer are preferred; however, they do not explain why equal transfers are particularly effective. Transfers are also effective in sustaining cooperation even when they are imposed and not chosen.