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The Pricing of Binspace—A Contribution to the Theory of Storage
Author(s) -
Paul Allen B.
Publication year - 1970
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238157
Subject(s) - bin , position (finance) , range (aeronautics) , function (biology) , economics , microeconomics , agricultural engineering , business , agricultural economics , industrial organization , computer science , finance , engineering , algorithm , evolutionary biology , biology , aerospace engineering
The short‐run supply of grain storage is reexamined. A classical, positively‐sloping function applies over most of the observed range. Because different grains compete for space, all grains were considered together. A novel method of computing price was used. This price of binspace is positively related to off‐farm grain stocks and sales of grain off farms—each deflated by bin capacity. Sales are a major influence, reflecting current handling demands as opposed to pure storage demands. Handling demands seem to act as a storage supply shifter. The position slope suggests existence of convenience yields for uncommitted bins.