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Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects

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Author Info
Timothy Park (University of Georgia)
Luanne Lohr (University of Georgia)

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Abstract

Organic farmers have traditionally relied on a variety of marketing channels, suggesting that earned organic income will depend on the farmer's experience in producing and selling organic products and their comparative advantage in bargaining and marketing skills. A discrete choice model of the choice of marketing channels is developed which accounts for the role of selectivity bias. Farmers who are most likely to sell through a diversified set of outlets or to use a single outlet have increased earnings relative to farmers who overlook these marketing options. Producers with less experience gravitate toward use of a single marketing outlet while more experienced producers tend to diversify and market through all three channels. Constraints in selling organic products tends tend to have a negative effect on farm income.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 4 (2006)
Issue (Month): 1 ()
Pages: 1129-1129
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Handle: RePEc:bep:bjafio:v:4:y:2006:i:1:p:1129-1129

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Related research
Keywords: bargaining models marketing outlets organic production selectivity correction

References listed on IDEAS
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  1. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  2. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May. [Downloadable!] (restricted)
  3. Inderst, Roman & Shaffer, Greg, 2004. "Retail Mergers: Buyer Power and Product Variety," CEPR Discussion Papers 4236, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Tasneem Chipty & Christopher M. Snyder, 1999. "The Role Of Firm Size In Bilateral Bargaining: A Study Of The Cable Television Industry," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 326-340, May. [Downloadable!] (restricted)
  5. Tyagi, Rajeev K, 2001. "Why Do Suppliers Charge Larger Buyers Lower Prices?," Journal of Industrial Economics, Blackwell Publishing, vol. 49(1), pages 45-61, March. [Downloadable!] (restricted)
  6. Schumacher, Ute, 1991. "Buyer Structure and Seller Performance in U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 277-84, May. [Downloadable!] (restricted)
  7. Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-30, March. [Downloadable!] (restricted)
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