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We analyze the impacts of minimum quality standards (MQS) imposed by producers acting collectively through a producer organization, such as a marketing order. MQS imposed in a competitive market can never enhance social welfare because in general an MQS creates two deadweight losses--one due to...
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The spatial distribution of production is a defining characteristic of agriculture, and the location choice in geographic space and the spatial pricing policies adopted by agricultural processing/packing firms are key determinants of the competitiveness and efficiency of agricultural product...
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Significant transport costs and spatially distributed supply and processing create oligopsony power in agricultural markets. Price discrimination expressed in the form of partial or complete absorption of freight charges by processors is often observed in these environments, but we understand...
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