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Development of new cultivars requires extensive genetic knowledge, trained personnel, and significant financial resources, so it is crucial for breeders to focus on the…
Development of new cultivars requires extensive genetic knowledge, trained personnel, and significant financial resources, so it is crucial for breeders to focus on the attributes most preferred by the key supply chain stakeholders such as consumers and producers. The purpose of this paper is to identify which attributes generate the highest total revenue or social surplus, information that breeders can take into account as they allocate resources to focus on attributes in their breeding programs.
This study used mail-in and online surveys to collect consumer and producer choice experiment data, and then employed mixed logit models to analyze and simulate individual producer and consumer willingness to pay (WTP) for the apple attributes.
Based on the simulation results, this study derived the supply and demand curves and the market equilibrium prices and quantities for each apple attribute. Based on the WTP analysis for both consumer and producer, this paper found the highest equilibrium price and welfare for apples come from crispness, followed by flavor.
The authors propose a framework to estimate the equilibrium prices and quantities of a product based on the results of choice experiments. The framework can be easily adapted to understand any countries’ producer and consumer preferences for certain products.
A similarity index of maximum residue level (MRL) regulations is introduced into a variable elasticity of substitution (VES) model to analyze the impacts of MRL regulation…
A similarity index of maximum residue level (MRL) regulations is introduced into a variable elasticity of substitution (VES) model to analyze the impacts of MRL regulation similarity on trade flows and social welfare. We specially consider the situation where the requirements set by the importing country are stricter than those of the exporting country. We find that the more similar the MRL regulation between trading partners is, the more substitutable their goods are, and for the consumers that have home preferences for domestic goods, they prefer the imported goods that are more similar to the domestic goods. Our results also show that if the developing countries upward harmonized their MRL standards to developed countries, their exports would expand.
We investigate producers’ choice between geographical indications (GI) and brand advertising (BA) as pure marketing strategies to convey information to consumers…
We investigate producers’ choice between geographical indications (GI) and brand advertising (BA) as pure marketing strategies to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We identify conditions under which GI and BA emerge with and without quality effort, depending on the relative costs and effectiveness of marketing strategies and quality improvement. Beyond the conventional equilibrium cases of GI-no-quality-effort and BA-with-quality-effort, we identify several other equilibrium strategies. Under plausible parameter characterization, and in spite of the free-riding problem of collective reputation, producers choose GI and quality improvement efforts at equilibrium. This occurs when the cost of marketing is high, the relative cost of quality effort is low relative to the former, and when the effectiveness of marketing promotions is low. BA without quality improvement also emerges as an equilibrium strategy for the opposite cost structure (low cost of promotion, high cost of effort relative to promotion, and higher effectiveness of promotion). Finally, the joint selection of both instruments BA and GI is examined. We motivate and illustrate our analysis with the European and New-World wine industries.
John C. Beghin is the Marlin Cole Professor of International Agricultural Economics in the economics department at Iowa State University (ISU). He is the former director of the Food and Agricultural Policy Research Institute at ISU which he led from 1999 to 2007. He is a leading scholar on agricultural trade policy analysis, with a long-term interest in nontariff measures. He has held positions at North Carolina State University, the OECD Development Centre, the Institut National de la Recherche Agronomique, the International Labor Office, and the University of Sydney. He has consulted for various international and governmental agencies and private clients including the American Farm Bureau Federation, FAO, OECD, US Army Corps of Engineers, US General Accountability Office, the US Grains Council, and the World Bank among others. He holds a PhD in agricultural and resource economics from the University of California, Berkeley. His research work has appeared in the American Journal of Agricultural Economics, Canadian Journal of Economics, Ecological Economics, Economics Letters, Environment and Development Economics, Health Economics, Journal of Comparative Economics, Journal of Development Economics, Oxford Economic Papers, Review of Economics and Statistics, and World Development, among other journals.