Discount Schedules and Grower Incentives in Grain Marketing
AbstractIn this paper, the authors develop a microeconomic optimization model of grain elevator cleaning and commingling decisions when the firm is faced with different discounting schedules. Using generalizations of Jensen's inequality, it is shown that a convex (concave) discount schedule encourages commingling (cleaning). However, a separate market for cleanings may qualitatively alter the optimal arrangement of grain. Wheat elevator records are studied to discern whether alternative discount schedules provide elevators with opportunities to cover the costs of rearranging grain composition. Rearrangement activities appear to be marginally profitable for some dockage levels.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10672.
Date of creation: 01 Aug 1997
Date of revision:
Publication status: Published in American Journal of Agricultural Economics, August 1997, vol. 79 no. 3, pp. 888-901
Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Other versions of this item:
- David A. Hennessy & Thomas I. Wahl, 1997. "Discount Schedules and Grower Incentives in Grain Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 888-901.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yoon, Byung-Sam & Brorsen, B. Wade & Lyford, Conrad P., 2001.
"Value Of Increasing Kernel Uniformity,"
2001 Annual Meeting, July 8-11, 2001, Logan, Utah
36106, Western Agricultural Economics Association.
- Johnson, D. Demcey, 2005. "Sorting and Blending Under Quality Uncertainty: Application to Wheat Protein," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 36316, Western Agricultural Economics Association.
- Chalfant, James A. & James, Jennifer S. & Lavoie, Nathalie & Sexton, Richard J., 1999. "Asymmetric Grading Error And Adverse Selection: Lemons In The California Prune Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
- Richter, Francisca G.-C. & Diaz, Edgar F. Pebe & Brorsen, B. Wade & Currier, Kevin, 2003.
"Using Both Sociological And Economic Incentives To Reduce Moral Hazard,"
2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama
35009, Southern Agricultural Economics Association.
- Richter, Francisca G.-C. & Diaz, Edgar F. Pebe & Brorsen, B. Wade & Currier, Kevin, 2003. "Using Both Sociological and Economic Incentives to Reduce Moral Hazard," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
- Lyford, Conrad P. & Starbird, S. Andrew, 2000. "Optimal Grade Definitions For Multiple Quality Characteristics," 2000 Annual meeting, July 30-August 2, Tampa, FL 21728, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges) The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.