The Role of Spatial Density and Technological Investment on Optimal Pricing Strategies in the Grain Handling Industry
| Autor: | Anton Bekkerman, Mykel R. Taylor |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Bushel
Organizational Behavior and Human Resource Management Economics and Econometrics Exploit Strategy and Management media_common.quotation_subject 05 social sciences Grain elevator Investment (macroeconomics) Agricultural economics law.invention Competition (economics) Pricing strategies law Management of Technology and Innovation Cash 0502 economics and business Economics Spatial variability 050207 economics 050205 econometrics media_common |
| Zdroj: | Review of Industrial Organization. 57:27-58 |
| ISSN: | 1573-7160 0889-938X |
| DOI: | 10.1007/s11151-019-09725-2 |
| Popis: | Shuttle-loading elevators represent an investment that may lower marginal grain-handling costs. Some portion of those savings could be passed on to farmers in the form of higher cash prices. We model the pass-through decision and exploit a natural, historical difference in Kansas and Montana wheat markets to test several pass-through hypotheses empirically. Using cross-sectional, temporal, and spatial variation in weekly wheat prices in 2005–2013, we find that—relative to conventional grain elevators in Kansas—shuttle-loading facilities offer a $0.13 per bushel premium. In Montana—where there is less spatial competition among elevators—the pass-through is only $0.04 per bushel. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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