For years, the U.S. price of grain sorghum has been settled as 95% of the price of corn. Nevertheless, the increasing demand for corn and grain sorghum in ethanol production might have changed that price relationship. In this study, we use cointegration and the vector autoregressive model with...

Food processors have seen escalating levels of competition over the past three decades. An underlying objective of this research is to gain a greater understanding of how food companies thrive in the face of this increased competition. This study incorporates market orientation theory...

Shifting patterns of corn use as a result of the ethanol boom may be causing basis levels to change across the United States, creating the need for methods to predict basis levels in dynamic conditions. This study develops a new and straightforward economic model of basis forecasting that...

The storage-at-a-loss paradox—stocks despite inadequate price growth to cover storage costs—is an unresolved issue of long-standing interest to economists. Alternative explanations include risk premiums for futures market speculators, convenience yields from holding stocks, and...

This note shows how the solution to the promotion problem—the problem of locating the optimal level of advertising in a downstream market—can be motivated simply, diagrammatically, and without the need to resort to complicated mathematical arguments. The optimality condition is for...