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A Spatiotemporal Quality Competition Model of the Australian Sugarcane Processing Industry
Author(s) -
Ryland G. J.,
Guise J. W. B.
Publication year - 1975
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 - 10.2307/1238405
Subject(s) - competition (biology) , revenue , quality (philosophy) , production (economics) , industrial organization , economics , homogeneous , competition model , microeconomics , cane , econometrics , business , natural resource economics , sugar , mathematics , ecology , profit (economics) , philosophy , accounting , epistemology , combinatorics , biology , biochemistry , chemistry
An activity analysis model is developed to determine the optimum period of production at a chain of sugarcane processing plants and the optimal regional transport network flows of cane and raw sugar. Explicit treatment is given to discrete variations in input quality which affect revenue at each plant location in each time period. Optimal solutions to three market configurations open to a multifacility monopolist—spatiotemporal quality competition, spatial quality competition, and pure competition—are obtained. Results suggest that, for given output, industry net revenues can be increased when explicit consideration is given to input quality variations relative to industry net revenues associated with treating inputs as homogeneous.