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Pleasures of Cockaigne: a Story of Quality Gaps, Market Structure and Demand for Grading Services

Author

Listed:
  • Hollander, A.
  • Monier, S.
  • Ossard, H.

Abstract

This paper explores under what circumstances high-quality producers would not voluntarily submit grading when low-quality firms would readily do sa, and under what conditions high-quality firms would have a lesser proportion if their ouput graded than low-quality counterparts. It also investigates how market structure affects the decision to engage in grading. In thsi regard, the paper establishes how the prices of graded as well as ungraded output varies with the amount of output graded and the extent to which market structure determines whether the amounts graded by individual firms will yield an industry outcome, which is optimal from a social welfare point of view.

Suggested Citation

  • Hollander, A. & Monier, S. & Ossard, H., 1998. "Pleasures of Cockaigne: a Story of Quality Gaps, Market Structure and Demand for Grading Services," Cahiers de recherche 9804, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:9804
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    Keywords

    AGRICULTURE ; MARKETS STRUCTURES ; PRICES;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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