A CONCEPTUAL FRAMEWORK FOR ANALYSIS OF MARKET EFFICIENCY

Important agricultural marketing policies and decisions are constantly before industry and government. Much market research is being supported. There is a need to “bridge” research with policy. The core of this paper is to develop a conceptual framework that spans the needed analysis of marketing efficiency. The basic point is that marketing policy must focus on both competition and physical operations. The analysis of this paper builds upon Clark's concept of workable competition and Sosnick's extension to the concept of effective competition. Market efficiency is separated into operational efficiency and exchange efficiency components; the determinants of each component are diagnosed and analyzed in terms of costs and pricing. While the agricultural marketing process produces increments of product form, space, and time utility, costs are incurred. Cost analysis is central to the notion of operational efficiency; cost levels depend upon market organization and the feasible set of market logistics. Exchange efficiency refers primarily to price; the effectiveness with which price reflects costs depends upon market structures and the applicable competitive strategies. The conceptual framework developed in this paper integrates the preceding relationships and formalizes an approach for decisions. Trade-offs often exist between operational efficiency and exchange efficiency components of market efficiency. When a trade-off relationship exists, market efficiency is maximized by equalizing the gain in one component with the opportunity-cost loss in the other component. Le gourvernement el I'industrie font continuellemeni face à?importante décisions dans le domaine des marchés el de la politique agricloe. Ces deux groupes subven-tionnenl les recherches dans ce domaine. II y a un besoin de Her la recherche avec la politique. ?essentiel de cet article est de développer un côdre qui comprend ?analyse nécessaire pour ?efficacité du marché, le point important est que le politique du marché doit se concentrer sur le concurrence et les operations. L'analyse de cet article travail sur le théorie de concurrence réalisable de Clark et sur celle Sosnick traitant de ?Extension de la concurrence effective. ?efficacité du marché est diversé en deux éléments: ?exploitation efftcace el ?echange éfficace, les facteurs déterminant de chaque élément sont soumis à un diagnostic et à une analyse en termes du coût et du prix