IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v98y2016i5p1419-1431..html

Supply Chain Design and Adoption of Indivisible Technology

Author

Listed:
  • Liang Lu
  • Thomas Reardon
  • David Zilberman

Abstract

We develop a framework for analyzing small farms’ adoption of indivisible technologies by using a threshold diffusion model. The article shows that different supply chains may emerge to enable the adoption of these technologies. When the gain from adoption is not affected by scale or ownership of the technology, independent technology dealers or larger farmers may buy the indivisible equipment that embodies the technology and rent it to farmers, or enable farmers to outsource the machine’s services by supplying custom services. The article derives equilibrium prices and quantities in the output and equipment rental or outsourcing markets. The prices and quantities are a function of the heterogeneity of farmers and the features of the technology. Introducing the new indivisible technology will benefit larger adopting farmers and consumers but may hurt non-adopters. We illustrate our conceptual findings.

Suggested Citation

  • Liang Lu & Thomas Reardon & David Zilberman, 2016. "Supply Chain Design and Adoption of Indivisible Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1419-1431.
    • Handle: RePEc:oup:ajagec:v:98:y:2016:i:5:p:1419-1431.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ajae/aaw076
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. Ford Ramsey & Barry Goodwin & Mildred Haley, 2021. "Labor Dynamics and Supply Chain Disruption in Food Manufacturing," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    2. Guang Tian & Xiaoxue Du & Fangbin Qiao & Andres Trujillo-Barrera, 2021. "Technology Adoption and Learning-by-Doing: The Case of Bt Cotton Adoption in China," JRFM, MDPI, vol. 14(11), pages 1-13, November.
    3. Palatnik, Ruslana Rachel & Freer, Mikhail & Levin, Mark & Golberg, Alexander & Zilberman, David, 2023. "Algae-Based Two-Stage Supply Chain with Co-Products," Ecological Economics, Elsevier, vol. 207(C).
    4. Xiaoxue Du & Hernan Tejeda & Zhengliang Yang & Liang Lu, 2022. "A General-Equilibrium Model of Labor-Saving Technology Adoption: Theory and Evidences from Robotic Milking Systems in Idaho," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    5. Maas, Alexander S. & Lu, Liang, 2020. "“Elections have Consequences”: Partisan Politics are Literally Killing Us," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304457, Agricultural and Applied Economics Association.
    6. Surendran-Padmaja, Subash & Parlasca, Martin C. & Qaim, Matin & Krishna, Vijesh V., 2025. "Private service provision contributes to widespread innovation adoption among smallholder farmers: Laser land levelling technology in northwestern India," Agricultural Water Management, Elsevier, vol. 312(C).
    7. Gulati, Kajal & Lybbert, Travis J. & Spielman, David J., "undated". "Diffusing to level fields: Evolution of laser land leveling technology markets in India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258387, Agricultural and Applied Economics Association.
    8. Amir Heiman & Joel Ferguson & David Zilberman, 2020. "Marketing and Technology Adoption and Diffusion," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 21-30, March.
    9. Diane Charlton & Marcelo Castillo, 2021. "Potential Impacts of a Pandemic on the US Farm Labor Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 39-57, March.
    10. Hennessy, David A. & Zhang, Jing & Bai, Na, 2019. "Animal health inputs, endogenous risk, general infrastructure, technology adoption and industrialized animal agriculture," Food Policy, Elsevier, vol. 83(C), pages 355-362.
    11. Reardon, Thomas & Awokuse, Titus & Belton, Ben & Liverpool-Tasie, Lenis Saweda O. & Minten, Bart & Nguyen, Genevieve & Qanti, Sara & Swinnen, Johan & Vos, Rob & Zilberman, David, 2024. "Emerging outsource agricultural services enable farmer adaptation in agrifood value chains: A product cycle perspective," Food Policy, Elsevier, vol. 127(C).
    12. Sara Ratna Qanti & Thomas Reardon & Arief Iswariyadi, 2017. "Triangle of Linkages among Modernising Markets, Sprayer–traders, and Mango-farming Intensification in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(2), pages 187-208, May.
    13. Charlton, Diane & Hill, Alexandra E. & Taylor, J. Edward, "undated". "Automation and social impacts: winners and losers," ESA Working Papers 330793, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    14. Umakanta Mishra & Abu Hashan Md Mashud & Ming-Lang Tseng & Jei-Zheng Wu, 2021. "Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm," Mathematics, MDPI, vol. 9(5), pages 1-23, February.
    15. Tejeda, Hernan A. & Chahine, Mireille & Du, Xiaoxue & Lu, Liang & Westerhold, Ashlee, 2020. "Investigating Factors Affecting Adoption of Automated Milking Systems (AMS) in Idaho," Western Economics Forum, Western Agricultural Economics Association, vol. 18(2), December.
    16. Bellemare, Marc F. & Lee, Yu Na & Novak, Lindsey, 2021. "Contract farming as partial insurance," World Development, Elsevier, vol. 140(C).
    17. Scott Kaplan & Ben Gordon & Feras El Zarwi & Joan L. Walker & David Zilberman, 2019. "The Future of Autonomous Vehicles: Lessons from the Literature on Technology Adoption," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 583-597, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:98:y:2016:i:5:p:1419-1431.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.