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Will The Voluntary Checkoff Program Be The Answer? An Analysis Of Optimal Advertising And Free-Rider Problem In The U.S. Beef Industry

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  • Chung, Chanjin
  • Henneberry, Shida Rastegari
  • Tostao, Emilio

Abstract

This study develops a framework for the analysis of optimal advertising and free-rider problem. Previous studies in the literature were extended in two ways. First, the new framework allows retailer's oligopsony power separately from processor's market power. Second, to examine the free-rider problem, we introduce the trade component to the model and divide domestic producers into two groups: participating producers and non-participating producers in the possible voluntary program. The free-rider problem was measured as the amount of domestic price decrease due to the increased production from importers and non-participating producers.

Suggested Citation

  • Chung, Chanjin & Henneberry, Shida Rastegari & Tostao, Emilio, 2004. "Will The Voluntary Checkoff Program Be The Answer? An Analysis Of Optimal Advertising And Free-Rider Problem In The U.S. Beef Industry," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34694, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaft:34694
    DOI: 10.22004/ag.econ.34694
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    References listed on IDEAS

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