A two-stage model is developed to study food processing firms' brand advertising and its welfare effects on farmers in a duopsony/duoploy setting. In stage 1 firms compete to differentiate their products through brand advertising, and in stage 2 firms engage in quality competition. Farmers may...

This research examines the lead-lag relationships between futures prices, prices from a cash forward market, and spot prices for two forest product markets. Results suggest that for 2x4 lumber, the forward market provides some level of price discovery, but futures play a dominant price discovery...

In most spatial markets, firms use either FOB or uniform delivered pricing, so the competitive factors motivating this choice and its welfare implications are important research questions. Prior work on duopoly using inelastic demands leads to biased results and our model on duopsony with...

The traditional necessary condition for futures market inefficiency is the existence of alternative forecasting methods that produce mean squared forecast errors smaller than the futures market. Here, a more exacting requirement for futures market efficiency is proposedforecast encompassing....

Markets for horizontally differentiated products with differential costs are important and have unique features. This paper studies sellers' pricing strategy and market equilibrium in these markets under various competition scenarios in the context of retail milk markets. An empirical study is...

Replaced with revised version of paper 07/20/05.

Myers and Thompson (1989) noted that the model specification could have a large impact on the hedge ratio estimated. A huge literature exists on estimating hedge ratios, but the literature is lacking a formal treatment of model specification uncertainty. This research accomplishes that task by...