Bogetoft, Peter; Jensen, Peter Max Friis; Olsen, Rene H. - Institut for Fødevare- og Ressourceøkonomi, … - 1999
We consider how to organize the processing and marketing of an agricultural product when farming costs are known only by the individual farmers. We show that when marginal costs are un-correlated and the market for final goods is competitive, the socially optimal production levels may be...