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Food Marketing Technology and Contingency Market Valuation

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  • Garth J. Holloway
  • Anthony C. Zwart

Abstract

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.

Suggested Citation

  • Garth J. Holloway & Anthony C. Zwart, 1993. "Food Marketing Technology and Contingency Market Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 624-631.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:3:p:624-631.
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    File URL: http://hdl.handle.net/10.2307/1243569
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    Cited by:

    1. Cavatorta, Elisa & Pieroni, Luca, 2013. "Background risk of food insecurity and insurance behaviour: Evidence from the West Bank," Food Policy, Elsevier, vol. 43(C), pages 278-290.
    2. Holloway, Garth J. & Hertel, Thomas W. & Han, Frank M., 1997. "Does Market Power Matter?," Working Papers 225884, University of California, Davis, Department of Agricultural and Resource Economics.

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