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Informed Control Over Inputs and Extent of Industrial Processing

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Abstract

Stylized facts regarding the industrial process include emphases on obtaining information about and control over the quality of raw materials. We provide a model that establishes conditions under which informed control involves ensuring uniformity in inputs and increased uniformity encourages more extensive processing. We show when the Boltzmann-Shannon entropy statistic is an appropriate measure of uniformity.

Suggested Citation

  • David A. Hennessy, 2005. "Informed Control Over Inputs and Extent of Industrial Processing," Center for Agricultural and Rural Development (CARD) Publications 05-wp398, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:05-wp398
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    Cited by:

    1. Lambert, David K., 2008. "The expected utility of genetic information in beef cattle production," Agricultural Systems, Elsevier, vol. 99(1), pages 44-52, December.
    2. 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.
    3. David A. Hennessy & Tong Wang, 2012. "Animal Disease and the Industrialization of Agriculture," Natural Resource Management and Policy, in: David Zilberman & Joachim Otte & David Roland-Holst & Dirk Pfeiffer (ed.), Health and Animal Agriculture in Developing Countries, edition 1, chapter 0, pages 77-99, Springer.
    4. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants' Traceability Levels Evidence From Iowa," Staff General Research Papers Archive 12791, Iowa State University, Department of Economics.

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    Keywords

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    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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