IDEAS home Printed from https://ideas.repec.org/p/ags/nddsps/23661.html
   My bibliography  Save this paper

Operational Efficiency Of A U.S./Canadian Wheat Pool: A Game Theory Analysis

Author

Listed:
  • Nganje, William E.
  • Koo, Won W.
  • Park, Joon J.
  • Taylor, Richard D.

Abstract

The problem of declining wheat prices and excess supply has been the subject of recent economic studies partly because it coincides with the Federal Agriculture Improvement and Reform (FAIR) Act of 1996, and partly because efforts to decrease supply domestically have led to increased imports from Canada. This paper develops a game theory optimization model of market efficiency and derives conditions under which voluntary pooling is sustained for U.S./Canadian durum and hard red spring wheat producers. Analysis reveals that U.S. and Canadian farmers can increase farm returns with efficiency gains from pooling and by internalizing benefits from grain blending and logistics. The model is used to analyze diverse factors affecting the sustainability of such a pool.

Suggested Citation

  • Nganje, William E. & Koo, Won W. & Park, Joon J. & Taylor, Richard D., 2001. "Operational Efficiency Of A U.S./Canadian Wheat Pool: A Game Theory Analysis," Staff Papers 23661, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddsps:23661
    DOI: 10.22004/ag.econ.23661
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/23661/files/ae01001.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.23661?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Johnson, D. Demcey & Nganje, William E., 2000. "Impacts Of Don In The Malting Barley Supply Chain: Aggregate Costs And Firm-Level Risks," Agricultural Economics Miscellaneous Reports 23103, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
    3. Swenson, Andrew L., 1998. "Financial Characteristics Of North Dakota Farms, 1995-1997," Agricultural Economics Reports 23200, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
    5. Ronald A. Babula & Cathy L. Jabara & John Reeder, 1996. "Role of empirical evidence in US|Canadian dispute on US imports of wheat, wheat flour, and semolina," Agribusiness, John Wiley & Sons, Ltd., vol. 12(2), pages 183-199.
    6. Koo, Won W. & Nganje, William E. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 1999. "Economic Analysis Of The Proposed North Dakota Wheat Pool; Summary," Agricultural Economics Reports 23453, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Koo, Won W. & Nganje, William E. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 1999. "Economic Analysis Of The Proposed North Dakota Wheat Pool," Agricultural Economics Reports 23173, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Richard J. Sexton & Mingxia Zhang, 1996. "A Model of Price Determination for Fresh Produce with Application to California Iceberg Lettuce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 924-934.
    Full references (including those not matched with items on IDEAS)

    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. van Damme, E.E.C., 1995. "Game theory : The next stage," Other publications TiSEM 7779b0f9-bef5-45c7-ae6b-7, Tilburg University, School of Economics and Management.
    2. Koo, Won W. & Uhm, Ihn H., 2000. "U.S.-Canada Border Disputes In Grains: Dynamic Interface Between The Free Trade Agreement And Trade Remedy Laws," Agricultural Economics Reports 23267, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. D. Abreu & D. Pearce, 2000. "Bargaining, Reputation and Equilibrium Selection in Repeated Games," Princeton Economic Theory Papers 00f2, Economics Department, Princeton University.
    4. Ali Al-Nowaihi & Sanjit Dhami, 2015. "Evidential Equilibria: Heuristics and Biases in Static Games of Complete Information," Games, MDPI, vol. 6(4), pages 1-40, November.
    5. Ali al-Nowaihi & Sanjit Dhami, 2015. "Evidential equilibria: Heuristics and biases in static games of complete information Working Paper Version," Discussion Papers in Economics 15/21, Division of Economics, School of Business, University of Leicester.
    6. Etro, Federico, 2017. "Research in economics and game theory. A 70th anniversary," Research in Economics, Elsevier, vol. 71(1), pages 1-7.
    7. Todd Guilfoos & Andreas Pape, 2016. "Predicting human cooperation in the Prisoner’s Dilemma using case-based decision theory," Theory and Decision, Springer, vol. 80(1), pages 1-32, January.
    8. Vincent P. Crawford, 1985. "Dynamic Games and Dynamic Contract Theory," Journal of Conflict Resolution, Peace Science Society (International), vol. 29(2), pages 195-224, June.
    9. Baek, Jungho & Mattson, Jeremy W. & Koo, Won W., 2009. "Analyzing Effects of the U.S. Duties on Canadian Hard Red Spring Wheat," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(2), pages 1-22.
    10. Schmidt, Torsten, 2001. "Finanzreformen in der Bundesrepublik Deutschland: Analyse der Veränderungen der Finanzverfassung von 1949 bis 1989," RWI Schriften, RWI - Leibniz-Institut für Wirtschaftsforschung, volume 67, number 67.
    11. Koo, Won W. & Nganje, William E. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 1999. "Economic Analysis Of The Proposed North Dakota Wheat Pool; Summary," Agricultural Economics Reports 23453, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. Eichberger, Jurgen & Kelsey, David, 2002. "Strategic Complements, Substitutes, and Ambiguity: The Implications for Public Goods," Journal of Economic Theory, Elsevier, vol. 106(2), pages 436-466, October.
    13. Dilip Abreu & David G. Pearce, 2006. "Bargaining, Reputation and Equilibrium Selection in Repeated Games with Contracts," Levine's Bibliography 321307000000000640, UCLA Department of Economics.
    14. Kambe, Shinsuke, 1999. "Bargaining with Imperfect Commitment," Games and Economic Behavior, Elsevier, vol. 28(2), pages 217-237, August.
    15. Ponti, Giovanni, 2000. "Cycles of Learning in the Centipede Game," Games and Economic Behavior, Elsevier, vol. 30(1), pages 115-141, January.
    16. Ralph W. Bailey & Jürgen Eichberger & David Kelsey, 2005. "Ambiguity and Public Good Provision in Large Societies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(5), pages 741-759, December.
    17. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    18. Markus C. Arnold & Eva Ponick, 2006. "Kommunikation im Groves-Mechanismus — Ergebnisse eines Laborexperiments," Schmalenbach Journal of Business Research, Springer, vol. 58(1), pages 89-120, February.
    19. Kamei, Kenju, 2016. "Information Disclosure and Cooperation in a Finitely-repeated Dilemma: Experimental Evidence," MPRA Paper 75100, University Library of Munich, Germany.
    20. Federico Di Pace & Matthias Hertweck, 2019. "Labor Market Frictions, Monetary Policy, and Durable Goods," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 274-304, April.

    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:nddsps:23661. 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/dandsus.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.