Nonbinding Suggestions: The Relative Effects of Focal Points versus Uncertainty Reduction on Bargaining Outcomes

This paper focuses on the effects of nonbinding recommendations on bargaining outcomes. Recommendations are theorized to have two effects: they can create a focal point for final bargaining positions, and they can decrease outcome uncertainty should dispute persist. While the focal point effect may help lower dispute rates, the uncertainty reduction effect is predicted to do the opposite for risk-averse bargainers. Which of these effects dominates is of critical importance in the optimal design of alternative dispute resolution (ADR) procedures, which are becoming increasingly utilized to help resolve disputes in a variety of settings. We theoretically examine the effects of recommendations on the bargaining contract zone. Our theoretical framework, which allows bargainers’ final positions to influence a binding outcome should negotiations fail, provides for a more stringent test of focal points than previously considered. We also present data from controlled laboratory bargaining experiments that are consistent with our model of recommendation effects. Recommendations are empirically shown to influence final bargaining positions and negotiated settlement values. Furthermore, dispute rates are significantly lower when one includes recommendations, even where the recommendation is completely ignored in final-stage arbitration. This highlights a potentially significant role for the use of nonbinding procedures, such as mediation, as a preliminary stage in developing more efficient ADR procedures.

THE ROLE OF TRANSACTION COSTS IN MARKET SELECTION: MARKET SELECTION IN COMMERCIAL FEEDER CATTLE OPERATIONS

A survey of commercial feeder cattle operations in Utah revealed that explicit transaction costs such as transportation, shrink, and commissions can not fully explain how marketing alternatives are selected. Implicit transaction costs appear to play a critical role in the determination of market selection. For example, the level of trust between buyer and seller and the socio-economic characteristics of market participants are determinants of which marketing method will be used to sell feeder cattle.Livestock Production/Industries, Marketing,

Market Power with Dynamic Inventory Constraints: The Bias in Standard Measures

This paper incorporates inventory dynamics into an analysis of market power. Using a model in which each firm accounts for the effect of its current action on the current and future actions of itself and its competitors, we show that measures of market power that ignore inventory dynamics are biased. We then apply the model to the beef-packing industry using annual data on cattle stocks, slaughter and prices from 1933-1999. Our estimates suggest that static measures overestimate the amount of market power exerted by beef-packing firms.market power dynamic cattle conjectural variations stock

Letter to Dear Ones All

Correspondence to the Hunnicutt children from the family\u27s matriarch

MARKET POWER IN BEEF PACKING: FEEDLOT "CAPTURE" AND ITS CAUSES

Concentration in the beef packing industry has been rising for the past 25 years. Many studies of market power in beef packing are based on the conjectural variations framework, which depends on accurate estimates of packer input and processing costs. We propose an alternative measure of packer behavior which does not rely on estimates of packer costs. We also suggest how this measure could be used to draw tentative conclusions regarding packer behavior.Agribusiness, Marketing,

Letter to Anna Hunnicutt

Correspondence to Anna Hunnicutt, later Foster and Marshall, from her mother

Use of Landsat Imagery and Geographical Information Systems in the Assessment of Rangeland Cover and Wildlife Habitat

The first chapter of this thesis reviews applications of satellite remote sensing and geographical information systems (GIS) in wildlife studies. The simpler uses of remote sensing are for habitat mapping, often using satellite imagery classified for other natural resources. More sophisticated applications incorporate remotely sensed data into a GIS for the digital manipulation of data planes. The most advanced applications are those which use remote sensing and GIS in models predicting habitat quality or population levels. The second chapter reports how brightness values of six Landsat Thematic Mapper (TM) bands were used in multiple linear regressions to predict percent cover of six rangeland components. Regression equations were applied to TM imagery to create cover maps for live shrub, dead and live shrub, sagebrush, forb/grass, forb, and bare ground/rock. Accuracy was assessed at two levels and ranged from 55 to 90%. The third chapter presents results of sage grouse surveys used with satellite data and GIS to assess habitat use patterns. Habitats used by grouse were compared to availability in the landscape for continuous images of rangeland cover variables, for discrete images of rangeland classes, and for habitat diversity values. Overall, results were comparable to those in studies using traditional methods

MEASURING MARKET POWER WITH VARIABLES OTHER THAN PRICE

Beef packing has become an extremely concentrated industry, yet studies have found that little, if any market power exists. We propose and test alternative measures of behavior that may better describe how packers control purchases from feedlots, using confidential data collected by the USDA Grain Inspection, Packers and Stockyards Administration.Marketing,