SLOTTING ALLOWANCES, FAILURE FEES AND ASYMMETRIC INFORMATION IN THE GROCERY SUPPLY CHAIN

Marketing,

NON-CREDIBLE INFORMATION FLOWS BETWEEN FOOD MANUFACTURERS AND RETAILERS

Asymmetric information between food manufacturers and retailers constrains the efforts of analysts studying the retail food chain. The problem may be especially pronounced during new product introductions. Manufacturers may have demand information about new products but have incentives to not credibly relay that information. Retailers often lack reliable demand information about new products. Understanding the roots of non-credible information flows within the manufacturer/retailer relationship is important to behavioral modeling in the food chain. This paper provides an analytic derivation to explain sufficient conditions for non-credible information flows leading to asymmetric information and adverse selection problems. Results provide insight about formation of information sharing mechanisms in the retail grocery channel.Agribusiness,

THE CWAE TRACKING SURVEY: OBJECTIVES, METHODS AND RESULTS

Teaching/Communication/Extension/Profession,

ECONOMIC DEVELOPMENT INITIATIVES IN RURAL NORTH DAKOTA COMMUNITIES: SOCIOECONOMIC IMPACTS

The purpose of this study was to examine the local socioeconomic impacts of new economic development initiatives in North Dakota's rural (nonmetropolitan) communities. This report is the second to present findings from this project; an earlier report analyzed the effects of four new agricultural processing plants on their host communities. This report examines the effects of manufacturing and/or exported services facilities in three communities and presents comparison data drawn from two control communities (i.e., towns that had not experienced the advent of a major new employer during the 1990s). The information from the two groups of development communities and the control communities is compared and contrasted to discern similarities and differences in the effects of the different types of development initiatives and to develop a set of general principles and recommended actions for community leaders to follow when planning for a new employer. The agricultural processing projects were sited in rural counties, developed during the 1990s, and employed at least 40 workers. The communities with other types of economic development initiatives were rural communities where a new nonagricultural employer or an expansion of an existing facility had created at least 40 new jobs during the 1990s. The two control communities were located in rural counties, had not experienced a new nonagricultural employer or expansion with more than 20 new jobs since 1990, and were characterized by economic and demographic trends prior to 1990 that were similar to those of the development counties. In each of the study communities, the authors conducted in-depth interviews with a cross-section of community leaders, with the aim of gaining an understanding of the community (e.g., its population, economic base), the effects of project development, other socioeconomic changes that might have either exacerbated or offset the project's effects, and the community's response to the situation. Representatives of each of the development projects also were interviewed. Subsequently, a short survey was completed by a random sample of residents in each community. Improved job opportunities and enhanced incomes were generally seen as major positive effects of each of the new economic development initiatives. Further, aside from some management and engineering positions, most of the plant jobs appeared to represent employment opportunities for area workers, rather than being taken primarily by in-migrants. Residents' incomes were enhanced both by the plants' jobs and payroll (which often represented second incomes for area households) and by increased incomes for area farmers (in the case of agricultural processing facilities). Because most of the plant jobs were taken by persons already living in the area, the new plants did not lead to substantial in-migration or major population growth in the host communities. Rather, a reoccurring comment by local leaders was that the plant in their community had stabilized the local economy and population. Comparison of population trends in the development and control communities supports the perception of local informants that the economic development initiatives served to stabilize local populations.rural development, community impacts, North Dakota, manufacturing, Community/Rural/Urban Development,

SOCIOECONOMIC IMPACTS OF AGRICULTURAL AND NON-AGRICULTURAL DEVELOPMENT IN RURAL NORTH DAKOTA

Information from the groups of development communities and control communities is compared and contrasted to discern similarities and differences in the effects of the different types of development initiatives and to develop a set of general principles and recommended actions for community leaders to follow when planning for a new employer.Community/Rural/Urban Development,

MODELING INTERNATIONAL TRADE IMPACTS OF GENETICALLY MODIFIED WHEAT INTRODUCTIONS

Planned introductions of genetically modified crop varieties can be troublesome to model. Estimation of demand and supply equations is not feasible due to lack of data. Further, specifying demand and supply equations requires calibration to a presumed equilibrium. Depending on the point chosen, highly questionable results may be obtained. We propose a model that uses existing supply, demand, and elasticity estimates. The approach relies on composite supply and demand functions. These composite functions are linear combinations of GM and non-GM varieties. We then employ this approach in a model of world wheat trade to analyze the impact of several plausible GM wheat adoption and consumer acceptability scenarios.international trade, genetically modified organisms, producer surplus, consumer surplus, welfare, transportation cost, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies,

Determining the Future for Louisiana Sugar Cane Products, Inc.: A Case Study Analyzing Vertical Coordination Options

Deciding how to coordinate activities can be a challenge posed in any marketing chain. This case involves an agricultural cooperative that has focused entirely on marketing raw sugar cane for additional refinement. Recent dramatic shifts in the sector have caused the members of the cooperative to consider building a facility that will process the raw sugar cane. In so doing, the cooperative can consider using the spot market, using contracts, vertically coordinating, or vertically integrating. This case study of Louisiana Sugar Cane Products, Inc. is a unique, real-life case that can be widely used in marketing and cooperatives courses.Agribusiness, Crop Production/Industries,

AGRICULTURAL VALUE ADDED: PROSPECTS FOR NORTH DAKOTA

Introduction: This report provides an overview of the important factors affecting investments in agricultural value-added ventures. The introductory section outlines current research on factors important in the location of economic activity. Research applied to specific agricultural value-added ventures, such as food manufacturing and livestock feeding and finishing operations, are discussed. A listing of resources available to entrepreneurs considering value-added investments concludes the introductory section. Following the introductory section are short overviews of industries that already have, or may have, potential for increasing economic activity in the state. All are based on the important foundation of agriculture in the state's economy or upon the natural resource base giving the state a comparative advantage in investments in alternative energy or resource-based recreation.Agribusiness,

NON-CREDIBLE INFORMATION FLOWS BETWEEN FOOD MANUFACTURERS AND RETAILERS

Asymmetric information between food manufacturers and retailers constrains the efforts of analysts studying the retail food chain. The problem may be especially pronounced during new product introductions. Manufacturers may have demand information about new products but have incentives to not credibly relay that information. Retailers often lack reliable demand information about new products. Understanding the roots of non-credible information flows within the manufacturer/retailer relationship is important to behavioral modeling in the food chain. This paper provides an analytic derivation to explain sufficient conditions for non-credible information flows leading to asymmetric information and adverse selection problems. Results provide insight about formation of information sharing mechanisms in the retail grocery channel