Food marketing technology and contingency market valuation

Holloway, G. J. ORCID: https://orcid.org/0000-0002-2058-4504 and Zwart, A. C. (1993) Food marketing technology and contingency market valuation. American Journal of Agricultural Economics, 75 (3). pp. 624-631. ISSN 0002-9092 doi: 10.2307/1243569

Abstract/Summary

Marketing activities are introduced into a rational expectations model of the food marketing system. The model is used to evaluate effects of alternative marketing technologies on the distribution of the benefits of contingency markets in agriculture. Benefits depend on two parameters: the cost share of farm inputs and the elasticity of substitution between farm and nonfarm inputs in food marketing. Over a broad spectrum of technologies, consumers are likely to be the net beneficiaries and farmers the net losers from the provision of contingency markets