IDEAS home Printed from https://ideas.repec.org/a/ags/wjagec/32096.html
   My bibliography  Save this article

Flexible, Risk-Oriented Marketing Strategies For Pinto Bean Producers

Author

Listed:
  • King, Robert P.
  • Lybecker, Donald W.

Abstract

A model designed to identify preferred postharvest marketing strategies for pinto bean producers is presented. The model evaluates flexible strategies that use current market information to determine whether or not storage should continue. Explicit consideration is given to price uncertainty and risk preferences. The results indicate that nearly all decision makers prefer flexible strategies to fixed strategies that call for a predetermined pattern of sales. They also show that the choice of a marketing strategy is sensitive to risk preferences. Initial experiences in making the model available to producers are also discussed.

Suggested Citation

  • King, Robert P. & Lybecker, Donald W., 1983. "Flexible, Risk-Oriented Marketing Strategies For Pinto Bean Producers," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32096
    DOI: 10.22004/ag.econ.32096
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32096/files/08020124.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.32096?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. King, Robert P., 1979. "Operational Techniques for Applied Decision Analysis Under Uncertainty," AAEA Fellows - Dissertations and Theses, Agricultural and Applied Economics Association, number 181951, December.
    4. King, Robert P. & Robison, Lindon J., 1980. "Implementing Stochastic Dominance With Respect To A Function," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271563, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    5. Robert P. King & Lindon J. Robison, 1981. "An Interval Approach to Measuring Decision Maker Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 510-520.
    6. King, Robert P., 1982. "Adaptive Preharvest Hedging Strategies For Wheat," 1982 Annual Meeting, August 1-4, Logan, Utah 279209, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. V. Barnett, 1975. "Probability Plotting Methods and Order Statistics," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 24(1), pages 95-108, March.
    8. William A. Cromarty & Walter M. Myers, 1975. "Needed Improvements in Application of Models for Agriculture Commodity Price Forecasting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 172-177.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. King, Robert P., 1986. "Discussion Remarks On Stochastic Dominance The State Of The Art In Agricultural Economics," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271996, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    2. Fackler, Paul L. & King, Robert P., 1988. "Generation of Dependent Random Variates with Given Marginal Distributions and Fractile Correlation Structure," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270406, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Yangxuan Liu & Michael R. Langemeier & Ian M. Small & Laura Joseph & William E. Fry & Jean B. Ristaino & Amanda Saville & Benjamin M. Gramig & Paul V. Preckel, 2018. "A Risk Analysis of Precision Agriculture Technology to Manage Tomato Late Blight," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    4. Goh, Siew & Shih, Chao-Chyuan & Cochran, Mark J. & Raskin, Rob, 1989. "A Generalized Stochastic Dominance Program For The Ibm Pc," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-8, December.
    5. King, Robert P., 1984. "Micro-Macro Dynamics and Complicated Economic Behavior: Discussion," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307230, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    6. Apland, Jeffrey & Hauer, Grant, 1993. "Discrete Stochastic Programming: Concepts, Examples And A Review Of Empirical Applications," Staff Papers 13793, University of Minnesota, Department of Applied Economics.
    7. King, Robert P., 1985. "A Decision Support System For Commodity Marketing Management," Staff Papers 13827, University of Minnesota, Department of Applied Economics.
    8. Sen Lin & Bo Li & Antonio Arreola-Risa & Yiwei Huang, 2023. "Optimizing a single-product production-inventory system under constant absolute risk aversion," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 31(3), pages 510-537, October.
    9. Babcock, Bruce A. & Choi, E. Kwan & Feinerman, Eli, 1993. "Risk And Probability Premiums For Cara Utility Functions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-8, July.
    10. Raskin, Rob & Cochran, Mark J., 1986. "Interpretations And Transformations Of Scale For The Pratt-Arrow Absolute Risk Aversion Coefficient: Implications For Generalized Stochastic Dominance," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-7, December.
    11. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William, 2015. "Risk management strategies using potato precision farming technology," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205417, Agricultural and Applied Economics Association.
    12. Apland, Jeffrey & Kaiser, Harry M., 1984. "Discrete Stochastic Sequential Programming: A Primer," Staff Papers 13545, University of Minnesota, Department of Applied Economics.
    13. Wesley N. Musser & George F. Patrick & David T. Eckman, 1996. "Risk and Grain Marketing Behavior of Large-Scale Farmers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(1), pages 65-77.
    14. Blank, Steven C., 1990. "Returns To Limited Crop Diversification," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-9, December.
    15. Bown, A.N. & Ortmann, G.F. & Darroch, M.A.G., 1999. "Use Of Maize Marketing Alternatives And Price Risk Management Tools By Commercial Maize Farmers In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rister, M. Edward & Skees, Jerry R., 1982. "The Value Of Outlook Information In Post-Harvest Marketing Strategies," 1982 Annual Meeting, August 1-4, Logan, Utah 279431, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Anderson, Jock R. & Dillon, John L. & Hardaker, J. Brian, 1985. "Farmers and Risk," 1985 Conference, August 26-September 4, 1985, Malaga, Spain 183026, International Association of Agricultural Economists.
    3. King, Robert P., 1982. "Adaptive Preharvest Hedging Strategies For Wheat," 1982 Annual Meeting, August 1-4, Logan, Utah 279209, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Wilson, Paul N. & Hwang, Henry H., 1982. "User'S Guide To Ordinary And Generalized Stochastic Dominance Computer Programs," Staff Papers 13277, University of Minnesota, Department of Applied Economics.
    5. Benjamin Armbruster & Erick Delage, 2015. "Decision Making Under Uncertainty When Preference Information Is Incomplete," Management Science, INFORMS, vol. 61(1), pages 111-128, January.
    6. Love, Ross O. & Robison, Lindon J., 1984. "An Empirical Analysis Of The Intertemporal Stability Of Risk Preference," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-7, July.
    7. Bosch, Darrell & Eidman, Vernon, 1985. "The Value Of Soil Water And Weather/Information In Increasing Irrigation Efficiency," 1985 Annual Meeting, August 4-7, Ames, Iowa 278642, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Musser, Wesley N., 1994. "Progress In Risk Analysis In Regional Projects," 1994 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses Risk, Technical Committee Meeting, March 24-26, 1994, Gulf Shores State Park, Alabama 271553, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    9. Zering, Kelly D. & McCorkle, C.O., Jr. & Moore, Charles V., 1987. "The Utility Of Multiple Peril Crop Insurance For Irrigated, Multiple-Crop Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-10, July.
    10. Schumann, Keith D. & Richardson, James W. & Lien, Gudbrand D. & Hardaker, J. Brian, 2004. "Stochastic Efficiency Analysis Using Multiple Utility Functions," 2004 Annual meeting, August 1-4, Denver, CO 19957, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Wilson, Paul N. & Eidman, Vernon R., 1983. "An Empirical Test Of The Interval Approach For Estimating Risk Preferences," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-13, December.
    12. Harrison, R. Wes, 1998. "Stochastic Dominance Analysis of Futures and Option Strategies for Hedging Feeder Cattle," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 270-280, October.
    13. Anderson, Jock R. & Griffiths, William E., 1982. "Production Risk And Efficient Allocation Of Resources," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 1-7, December.
    14. Kramer, Randall A. & Pope, Rulon D., 1980. "The Benefits And Costs Of Participation In Farm Commodity Programs: A Stochastic Dominance Analysis," Working Papers 225685, University of California, Davis, Department of Agricultural and Resource Economics.
    15. Maynard, Leigh J. & Harper, Jayson K. & Hoffman, Lynn D., 1997. "Impact Of Risk Preferences On Crop Rotation Choice," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-9, April.
    16. Roach, Brian A. & Hamlett, Cathy A., 1991. "Dairy Farmer's Valuation of Decreased Market Risk Offered by Cooperatives," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Peter J. Phillips & Gabriela Pohl, 2017. "Terrorist choice: a stochastic dominance and prospect theory analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(2), pages 150-164, March.
    18. G.B.C. Backus & G.Th. Timmer & A.A. Dijkhuizen & V.R. Eidman & F. Vos, 1995. "A decision support system for strategic planning on pig farms," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 101-108, November.
    19. Bosch, Darrell J. & Eidman, Vernon R. & Gill, Eric E., 1986. "Compensating Irrigators For Restricting Water Use: An Expected Utility Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-10, December.
    20. Chunling Luo & Chin Hon Tan, 2020. "Almost Stochastic Dominance for Most Risk-Averse Decision Makers," Decision Analysis, INFORMS, vol. 17(2), pages 169-184, June.

    More about this item

    Keywords

    Crop Production/Industries; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.