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Is stabilization of potato price effective? Empirical evidence from the Idaho Russet Burbank potato market

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  • Yuliya Bolotova

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID 83844-2334)

  • Christopher S. McIntosh

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID 83844-2334)

  • Paul E. Patterson

    (Department of Agricultural Economics and Rural Sociology, University of Idaho, Idaho Falls, ID 83402-1575)

  • Kalamani Muthusamy

    (Wisconsin Public Power Inc., 1425 Corporate Center Drive Sun Prairie, WI 53590-9110)

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    Abstract

    High fresh potato price volatility, decreasing demand for fresh potatoes, and potato prices below the cost of production led to a decision of a group of Idaho potato growers to organize the United Potato Growers of Idaho, a marketing cooperative. The potato supply management program was developed to coordinate production and marketing of fresh potatoes. To evaluate the effectiveness of this program, the authors examine the level and volatility of Idaho Russet Burbank weekly shipping point prices during two periods: before the cooperative was organized and when the cooperative was in the market. They found empirical evidence suggesting that the analyzed prices were higher and less volatile during the period when the cooperative was in the market. © 2010 Wiley Periodicals, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.20213
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 26 (2010)
    Issue (Month): 2 ()
    Pages: 177-201

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    Handle: RePEc:wly:agribz:v:26:y:2010:i:2:p:177-201

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Bolotova, Yuliya & McIntosh, Christopher S. & Muthusamy, Kalamani & Patterson, Paul E., 2008. "The Impact of Coordination of Production and Marketing Strategies on Price Behavior: Evidence from the Idaho Potato Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), International Food and Agribusiness Management Association (IAMA), vol. 11(3).
    2. Susan Athey & Kyle Bagwell & Chris Sanchirico, 2004. "Collusion and Price Rigidity," Review of Economic Studies, Oxford University Press, vol. 71(2), pages 317-349.
    3. Abrantes-Metz, Rosa M. & Froeb, Luke M. & Geweke, John & Taylor, Christopher T., 2006. "A variance screen for collusion," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 24(3), pages 467-486, May.
    4. John Connor, 2005. "Collusion and price dispersion," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(6), pages 335-338.
    5. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, Elsevier, vol. 31(3), pages 307-327, April.
    6. Harrington, Joseph Jr. & Chen, Joe, 2006. "Cartel pricing dynamics with cost variability and endogenous buyer detection," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 24(6), pages 1185-1212, November.
    7. Bolotova, Yuliya & Connor, John M. & Miller, Douglas J., 2005. "The Impact of Collusion on Price Behavior: Empirical Results from Two Recent Cases," 2005 Annual meeting, July 24-27, Providence, RI, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, Econometric Society, vol. 50(4), pages 987-1007, July.
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