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Food Marketing Technology and Contingency Market Valuation
Author(s) -
Holloway Garth J.,
Zwart Anthony C.
Publication year - 1993
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 - 10.2307/1243569
Subject(s) - nonfarm payrolls , agricultural marketing , marketing , business , contingency , direct marketing , valuation (finance) , agriculture , economics , microeconomics , marketing management , relationship marketing , ecology , linguistics , philosophy , finance , biology
Marketing activities are introduced into a rational expectations model of the food marketing system. The model is used to evaluate effects of alternative marketing technologies on the distribution of the benefits of contingency markets in agriculture. Benefits depend on two parameters: the cost share of farm inputs and the elasticity of substitution between farm and nonfarm inputs in food marketing. Over a broad spectrum of technologies, consumers are likely to be the net beneficiaries and farmers the net losers from the provision of contingency markets.