On the Danish milk quota exchange each producer can submit a single bid (a quantity and a price limit) only. We demonstrate that this restriction has several distorting effects. First, traders minimise the risk of foregoing profitable trade by submitting their average valuation rather than their...

The reform of the EU sugar regime involves significant price reductions for sugar and sugar beet. We examine whether the Danish sugar industry can maintain production and profit levels by reallocating production from less to more efficient farmers. The impact of alternative reallocation...