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1 – 3 of 3Fabio L. Mattos and Stefanie A. Fryza
The purpose of this paper is to explore the existence of disposition effect among Canadian wheat farmers when marketing their grain. This study examines the question of whether…
Abstract
Purpose
The purpose of this paper is to explore the existence of disposition effect among Canadian wheat farmers when marketing their grain. This study examines the question of whether farmers wait too long to price their grain or whether they price it too soon.
Design/methodology/approach
The disposition effect is a common behavior documented in financial markets, and reflects the notion that investors tend to hold losing positions too long and close winning positions too fast. This idea can also be applied to grain marketing, exploring whether farmers sell their grain more readily when prices are “high” and wait longer when prices are “low.” Based on the approach by Odean (1998), marketing strategies of 15,564 farmers between 2003/2004 and 2008/2009 are examined.
Findings
Results support the existence of disposition effect in marketing decisions. Farmers seem to be eager to sell when prices offered by contracts are above their reference price and wait longer to sell when prices offered by contracts are below their reference price. There is no clear evidence that farmers might consistently benefit from this behavior. On the other hand, it is not clear whether this behavior can be costly to farmers.
Originality/value
Exploring the existence of disposition effect is relevant because this behavior can affect performance. If grain is sold too early, farmers can miss opportunities to sell at higher prices later. If grain is held too long, prices can go down and farmers will end up selling at lower prices. This study uses unique data to perform the first analysis of the disposition effect in the agricultural industry, and its findings can provide new insights and move us toward a more complete understanding of decision making in this industry.
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Rick L. Edgeman and Dennis K.J. Lin
Acceptance sampling can be both time‐consuming and destructive so that it is desirable to arrive at a sound lot disposition decision in a timely manner. Sequential sampling plans…
Abstract
Acceptance sampling can be both time‐consuming and destructive so that it is desirable to arrive at a sound lot disposition decision in a timely manner. Sequential sampling plans are attractive since they offer a lower average sample number than do matched single, double, or multiple sampling plans. Analogously, cumulative sum control charts offer the ability to detect moderate process shifts more rapidly than do Shewhart control charts applied to the same process. The inverse Gaussian distribution is flexible and is often the model of choice in accelerated life testing applications where early failure times predominate. Based on sequential probability ratio tests (SPRT), sequential sampling/ cumulative sum (CUSUM) plans provide timely, statistically based decisions. Presents SPRT and CUSUM results for the inverse Gaussian process mean. Also presents a simple goodness‐of‐fit test for the inverse Gaussian distribution which allows for model adequacy checking.
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Business is increasingly coming under attack by pressure groups. Many managers, and particularly those in marketing functions, are having to respond to these challenges. Others…
Abstract
Business is increasingly coming under attack by pressure groups. Many managers, and particularly those in marketing functions, are having to respond to these challenges. Others are at least having to take cognisance of pressure groups. The nature of pressure groups, their role, the different types that may be found and how they operate are considered. Pressure group actions involving business are also discussed, but activity is emphasised. Managers are urged to seek an understanding of pressure groups, especially those groups likely to take an interest in their business.