Unilateral vs. Bilateral Incentives: Evidence from the U.S. Pork Industry

The idea that individuals adapt their behaviors in response to changes in incentive systems is fundamental to most economic analysis. This paper incorporates the concept of price discovery costs into the incentive theory to offer a theoretical model and empirical evidence on the differential incentive effects of long-term contracts and spot markets. Using the US pork industry case where procuring intertemporally consistent weights of hogs have been critical to pork processors, we show why the effectiveness of unilaterally determined and posted incentive price for the hog quality by the pork packers on the intertemporal consistency erodes and why a bilateral incentive structure built through long-term hog procurement contracts is demanded, in the presence of volatile hog price and feed price movements. The MGARCH model analysis of USDA AMS data supported our hypotheses that long-term hog procurement contracts would help moderate the erosion relative to the spot markets, resulting greater intertemporal consistency of hog weights.long-term contracts, incentive effects, price discovery costs, MGARCH model, Livestock Production/Industries,

OPERATIONAL EFFICIENCY OF A U.S./CANADIAN WHEAT POOL: A GAME THEORY ANALYSIS

The problem of declining wheat prices and excess supply has been the subject of recent economic studies partly because it coincides with the Federal Agriculture Improvement and Reform (FAIR) Act of 1996, and partly because efforts to decrease supply domestically have led to increased imports from Canada. This paper develops a game theory optimization model of market efficiency and derives conditions under which voluntary pooling is sustained for U.S./Canadian durum and hard red spring wheat producers. Analysis reveals that U.S. and Canadian farmers can increase farm returns with efficiency gains from pooling and by internalizing benefits from grain blending and logistics. The model is used to analyze diverse factors affecting the sustainability of such a pool.Voluntary pooling, game theory, efficiency gains, durum and HRS wheat marketing, Crop Production/Industries, Marketing,

ECONOMIC ANALYSIS OF THE PROPOSED NORTH DAKOTA WHEAT POOL

The ND Durum Wheat Pool may provide additional revenue to durum wheat producers by raising the domestic prices in the North American market with full cooperation from the Canadian Wheat Board. The pool also could provide additional revenue to its members by improving marketing efficiency. On the other hand, the ND Spring Wheat Pool is less likely to provide additional revenue to spring wheat producers by raising domestic prices, mainly because hard red spring and winter wheat are highly substitutable. Efficiency gains also could be smaller than for durum wheat.marketing pool, market power, efficiency gains, durum wheat, hard red spring wheat, pool price, organizational structure, operating costs, Marketing,

OPERATIONAL EFFICIENCY OF US/CANADA WHEAT POOL: A GAME THEORY ANALYSIS

This paper develops a game theory optimization model of market efficiency and derives conditions under which voluntary pooling is sustained for US/Canada durum and hard red spring wheat producers. Analysis reveals that United States and Canadian farmers can increase farm returns with efficiency gains from pooling and by internalizing benefits from grain blending and logistics. The model is used to analyze diverse factors affecting the sustainability of such a pool.Crop Production/Industries, Marketing,

Thermal conductivity in B- and C- phase of UPt_3

Although the superconductivity in UPt_3 is one of the most well studied, there are still lingering questions about the nodal directions in the B and C phase in the presence of a magnetic field. Limiting ourselves to the low temperature regime (T<<Delta(0)), we study the magnetothermal conductivity with in semiclassical approximation using Volovik's approach. The angular dependence of the magnetothermal conductivity for an arbitrary field direction should clarify the nodal structure in UPt_3.Comment: 4 pages, 5 figure

A Spectral Line Survey from 138.3 to 150.7 GHZ toward Orion-KL

We present the results of a spectral line survey from 138.3 to 150.7 GHz toward Orion-KL. The observations were made using the 14 m radio telescope of Taeduk Radio Astronomy Observatory. Typical system temperatures were between 500 and 700 K, with the sensitivity between $0.02 - 0.06$ K in units of $\rm T_A^*$. A total of 149 line spectra are detected in this survey. Fifty lines have been previously reported, however we find 99 new detections. Among these new lines, 32 are `unidentified', while 67 are from molecular transitions with known identifications. There is no detection of H or He recombination lines. The identified spectra are from a total of 16 molecular species and their isotopic variants. In the range from 138.3 to 150.7 GHz, the strongest spectral line is the J=3-2 transition of CS molecule, followed by transitions of the $\rm H_2CO$, $\rm CH_3OH$, $\rm CH_3CN$, and $\rm SO_2$. Spectral lines from the large organic molecules such as $\rm CH_3OH$, $\rm CH_3OCH_3$, $\rm HCOOCH_3$, $\rm C_2H_5CN$ and $\rm CH_3CN$ are prominent; with 80 % of the identified lines arising from transitions of these molecules. The rotational temperatures and column densities are derived using the standard rotation diagram analysis for $\rm CH_3OH$ ($\rm ^{13}CH_3OH$), $\rm HCOOCH_3$, $\rm CH_3CN$ and $\rm SO_2$ with $\rm 10\sim 270 K$ and $\rm 0.2\sim 20\times 10^{15} cm^{-2}$. These estimates are fairly comparable to the values for the same molecule in other frequency regions by other studies.Comment: 10 figures, 2 tex files for a manuscript and tables, accepted to Ap