To avoid inventory risks, manufacturers often place rush orders with suppliers only after they receive firm orders from their customers (retailers). Rush orders are costly to both parties because the supplier incurs higher production costs. We consider a situation where the supplier's production...

In many developing countries, crop Minimum support price (MSP) is a subsidy scheme to: (i) improve farmer welfare by safeguarding farmers' incomes against vagaries in crop price, and (ii) improve consumer surplus by ensuring sufficient crop production. Among different mechanisms to...

should the prevailing market price be below the pre-specified MSP. In this paper, we consider a market consisting of infinitesimally small, rational, and strategic farmers(with heterogeneous production costs) who face market and yield uncertainties. Our equilibrium analysis reveals that (i)...

This paper examines the implications of credit-based MSPs in a setting that is more general than those examined in the research literature. Our setting entails a market comprising of two types of farmers (with heterogeneous production costs): "myopic" farmers (who make their crop selection and...

In many developing countries, governments often use Minimum support price (MSP) as a subsidy scheme to (i) safeguard farmers' income against vagaries in crop prices, and (ii) ensure sufficient production of different crops. While there are different mechanisms to operationalize the MSP scheme,...

In many developing countries, governments often use Minimum support prices (MSPs) as interventions to (i) safeguard farmers' income against crop price falls, and (ii) ensure sufficient and balanced production of different crops. In this paper, we examine two questions: (1) What is the impact of...