This study incorporates Real Options to determine the conditions under which it would be profitable for a regional shipping company to consider CNG (Compressed Natural Gas) as opposed to conventional diesel for the heavy-duty truck fleets. Such analysis can avoid the shipping industry adopting...

This paper examines the impact of technical efficiency on the optimal exit timing of farms in a stochastic dynamic framework. Starting from a standard real options approach, we incorporate technical efficiency via a production function and derive an optimal price trigger at which farms...

Over the past few years cellulosic biofuel production has continually fell short of the mandates set by the Renewable fuel standard. This has continued to happen despite positive predictions in the net present value of a cellulosic biofuel plants and government subsidy/assistance programs. The...

The present study formalizes and quantifies the importance of uncertainty for investment in a corn-stover based cellulosic biofuel plant. Using a real options model we recover prices of gasoline that would trigger entry into the market and calculate the portion of that entry trigger price...

The existence of price thresholds in grocery retailing is well-documented. Most authors explain the existence of price thresholds using Assimilation-Contrast Theory (ACT), Adaptation Level Theory (ALT) or Prospect Theory (PT). However, each of these theories is untenable if consumers are...

The “Locally grown” or “buy local” concept has brought tremendous impacts in many different market venues. This study focuses on finding whether there is any difference on the local definition between traditional shoppers (Kentucky food consumers) and food co-op shoppers. Particularly,...

We introduce the local farmland market concepts in order to understand the operation of French farmland sale market. We perform an empirical analysis of farmland prices based on farmland sale market in the Bretagne Region of France. The descriptive statistics show that the price of farmer to...

Consumption of locally labeled products has increased dramatically over the last decade. As such it is essential to understand what consumers are willing to pay for locally produced products and to understand if differences are present between states. Using berries as a product category given...

High poverty rate persists in rural Kenya, where farming households continue to depend on agriculture for food and income, despite economic growth. Maize is the most widely grown crop, with the maize-growing smallholder population quite heterogeneous and diversified.However, less than half the...