DEREGULATION AND INNOVATION IN RAILROAD SHIPPING OF AGRICULTURAL COMMODITIES: 1972-1995

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures, and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.transportation, grain, logistics, Public Economics,

PARTICIPATION AND LEARNING IN AUCTIONS: BIDDING DECISIONS IN EGYPTIAN OILSEED AUCTIONS

Auctions are common mechanisms for identifying prices and suppliers of commodities and are particularly important in agricultural marketing. Information asymmetries among bidders may be ameliorated over time through some form of learning. In this study, we incorporate prior decisions to participate, information from previous auctions, and firm-specific attributes to explain both the decision to bid and the level of the bid. Our analysis uses data from Egyptian oilseed tenders, an important market both for oilseeds and tendering. Because of the unbalanced nature of the panel data, we are able to evaluate the effects of signals received from previous tenders. We find that firms learn from previous auctions and can gain an informational advantage through some form of representation (e.g., by having an agent and/or direct sales agent to the country). Our results provide strong evidence that learning-by-doing affects the decision to participate and that learning affects the bid value. We also find that firms use outcomes of previous auctions to update information in both their decisions to participate in a market as well as determining the bid level. Finally, we find that firms with representation have a higher probability of participating in auctions and some evidence that they submit higher bids (earning higher returns).auction, bidding, tenders, optimal bids, learning, Marketing,

ESTIMATION OF MODAL DEMAND ELASTICITIES IN GRAIN TRANSPORTATION

Recent legislation in the transportation industry has stimulated a move toward more flexibility in railroad pricing and has consequently provided the impetus for the analysis of transportation demand. Modal demands for grain transportation are analyzed in this paper using a derived demand approach assuming dual relationships between production and cost functions of shippers' distribution activities. Hypotheses were introduced in the empirical specification about the effects of rail car shortages and the introduction of multiple-car rail rates. The model was estimated and hypotheses tested in the case of eastbound wheat and barley shipments form North Dakota.Demand and Price Analysis, Public Economics,

DIFFERENTIATION AND IMPLICIT PRICES IN EXPORT WHEAT MARKETS

This paper describes the extent and characteristics of differentiation in the international wheat market. Results indicate that the degree of differentiation has increased in the last 15 years. A hedonic price function is specified and estimated to examine implicit prices for characteristics and their changes through time.Crop Production/Industries, Demand and Price Analysis, International Relations/Trade,

DEMAND FOR WHEAT CLASSES BY PACIFIC RIM COUNTRIES

The transcendental logarithmic function is used to derive demand functions which are estimated for wheat classes imported by Pacific Rim countries. Results indicate substantial differences exist in underlying demand parameters for wheat of different classes as well as across countries. In addition, the expenditure level has important impacts on the distribution of imported wheat classes, and preferences have shifted significantly through time, generally toward higher protein wheats.Demand and Price Analysis,

HEDONIC PRICES IN THE MALTING BARLEY MARKET

An important characteristic in the malting barley market is the multitude of quality variables which affect the value of particular samples. The purpose of this study was to estimate implicit (or hedonic) prices for selected quality factors. An econometric model was used to analyze factors affecting the variability in malting barley prices, and to estimate implicit prices for plumpness and protein. The results indicate that a change may be evolving in the price determination process for malting barley. In particular, the feed grains sector has had increasingly less effect on malting barley prices in recent years.Crop Production/Industries, Marketing,

Hedging Effectiveness of U.S. Wheat Futures Markets

Futures markets as a tool for risk management have become increasingly important in recent years. The effectiveness of hedging in the U.S. wheat futures market is evaluated in this study.Marketing,

U.S. GRAIN HANDLING AND TRANSPORTATION SYSTEM: FACTORS CONTRIBUTING TO THE DYNAMIC CHANGES IN THE 1980S AND 1990S

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising of several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.transportation, grain, logistics, Industrial Organization,

Factors Affecting Post Harvest Changes in Grain Prices Received By North Dakota Producers

Demand and Price Analysis, Marketing,

QUALITY DIFFERENCES AND PRICE RESPONSIVENESS OF WHEAT CLASS DEMANDS

Price responsiveness and preferences for wheat classes are measured using a Case function specification. Results indicate there have been numerous changes in market shares of wheat classes from different exporters in specific markets. In general, quality differentials are important in some international markets; in others, relative prices are more important in determining market shares.Crop Production/Industries,