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Research And Advertising Decisions In An Open Economy: The Case Of Colombian Milds Coffee

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  • Sellen, Daniel
  • Goddard, Ellen

Abstract

Research and advertising investment both offer the potential to increase producer surplus. A model is developed that includes applied research and generic advertising with the aim of measuring marginal and optimal returns from each. While applicable to specific firm behavior, the model is applied to data from the world coffee market, with particular focus on Kenyan and Colombian producer groups.
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Suggested Citation

  • Sellen, Daniel & Goddard, Ellen, 1996. "Research And Advertising Decisions In An Open Economy: The Case Of Colombian Milds Coffee," Working Papers 244796, University of Guelph, Department of Food, Agricultural and Resource Economics.
    • Handle: RePEc:ags:uguewp:244796
    DOI: 10.22004/ag.econ.244796
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    References listed on IDEAS

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    1. R. Duncan & C. Tisdell, 1971. "Research and Technical Progress: The Returns to Producers," The Economic Record, The Economic Society of Australia, vol. 47(1), pages 124-129, March.
    2. Goddard, Ellen W. & Conboy, Paula, 1993. "Optimal International Promotion Expenditure for Differentiated Products," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-13, April.
    3. repec:bla:ecorec:v:47:y:1971:i:117:p:124-29 is not listed on IDEAS
    4. Avinash Dixit & Victor Norman, 1978. "Advertising and Welfare," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 1-17, Spring.
    5. Marlys Knutson & Luther G. Tweeten, 1979. "Toward an Optimal Rate of Growth in Agricultural Production Research and Extension," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 70-76.
    6. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
    7. Echeverría, Ruben G., 1990. "Methods for Diagnosing Research System Constraints and Assessing the Impact of Agricultural Research - Volume 1: Diagnosing Agricultural Research System Constraints," ISNAR Archive 310626, CGIAR > International Food Policy Research Institute (IFPRI).
    8. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
    9. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
    10. C. Richard Shumway, 1973. "Allocation of Scarce Resources to Agricultural Research: Review of Methodology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(4_Part_1), pages 557-566.
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    Cited by:

    1. J. A. L. Cranfield, 2003. "Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 299-321, November.

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