Skip to Main Content
 

Global Search Box

 
 
 
 

Files

File List


osu1069824697.pdf (409.56 KB)

ETD Abstract Container

Abstract Header

Three essays on economics of quality in agricultural markets

Wang, Chia-Hsing
http://rave.ohiolink.edu/etdc/view?acc_num=osu1069824697

Abstract Details

2004, Doctor of Philosophy, Ohio State University, Agricultural Economics and Rural Sociology.
I simulate growth and quality changes for pens of cattle and derive the value of pre-harvest sorting and genetic selection under grid pricing in a deterministic setting featuring animals with heterogeneous growth and quality maturation paths. The key findings are: 1) both pre-harvest sorting and increased genetic uniformity could substantially affect an individual cattle feeder’s net revenues; 2) one could expect higher marginal revenue gains from the genetic uniformity than from pre-market sorting; 3) both methods exhibit diminishing marginal returns and 4) aggregate beef supply may increase as improving uniformity typically leads to later optimal marketing dates and, hence, heavier animals at slaughter. Post-slaughter quality-based pricing of cattle is increasingly common. This quality, however, is dependent upon unobservable quality characteristics of the feeder cattle used as inputs and unverifiable effort exerted by feedlot managers. Through stochastic simulation I construct incentive compatible quality risk-sharing contracts based upon final grid-quality schedules in feeder cattle markets. Darby and Karni suggest branding as means of solving the potential fraudulence problems in the credence good market. Umbrella branding is a common marketing practice to promote new product and bond the product quality to the brand reputation. However, while umbrella branding works well in the experience good market, no evidence shows it would work in the credence good markets. I set up a framework for discussing the effect of umbrella branding on the quality provision of credence good. The results show that brand reputation, product similarity, probability of detection, punishment severity, and exogenous quality noise all play important roles in determining a firm’s decision on umbrella branding and fraud.
Brian Roe (Advisor)
116 p.
Cattle; genetic uniformity; growth curve; optimal marketing date; simulation; sorting; feeder cattle; incentive compatible contract; premium sharing; double-sided moral hazard; umbrella branding; credence good; auto repair; advertising

Recommended Citations

Citations

  • Wang, C.-H. (2004). Three essays on economics of quality in agricultural markets [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1069824697

    APA Style (7th edition)

  • Wang, Chia-Hsing. Three essays on economics of quality in agricultural markets. 2004. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1069824697.

    MLA Style (8th edition)

  • Wang, Chia-Hsing. "Three essays on economics of quality in agricultural markets." Doctoral dissertation, Ohio State University, 2004. http://rave.ohiolink.edu/etdc/view?acc_num=osu1069824697

    Chicago Manual of Style (17th edition)

osu1069824697
1,068
© 2004, all rights reserved.
This open access ETD is published by The Ohio State University and OhioLINK.