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The Role of Information in U.S. Grain and Oilseed Markets
Author(s) -
Jones Eluned
Publication year - 1999
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349983
Subject(s) - transparency (behavior) , arbitrage , price discovery , value (mathematics) , economics , market price , financial economics , business , monetary economics , microeconomics , machine learning , political science , computer science , law , futures contract
Abstract Transparency of information in economic (price) signals is the crux of the debate regarding institutional guidelines for grain and oilseed markets. Federal grades and standards guide the determination and discovery of price in the competitive (public) market. However, the increasing rate of market coordination is reflective of a widening information gap, which rent‐seeking entrepreneurs are able to arbitrage into higher returns. Thus, the outcome of the debate will determine the direction and rate of change of US. grain‐market structures as well as the degree to which market prices reflect the value of desired attributes.