By Bailey Norwood, Jayson Lusk
As fresh as its tone is the cutting edge strategy this book takes to fiscal thought and agricultural advertising innovations. This booklet deals versatility through overlaying quite a lot of themes that come with either conventional fiscal idea and organizational economics. beginner readers will gravitate to the inviting writing sort and colourful examples. All in one resource, readers will locate modern therapy of economics and value research, agricultural costs and markets, agribusiness advertising suggestions and more!
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Extra info for Agricultural Marketing and Price Analysis
Compensating people for predictable losses creates perverse incentives for people to make no effort avoiding these losses. In the end, the compensation schemes hurts society by lowering the number of toys it consumes, by making people less happy. Whenever government enacts policies, economists look for the Law of Unintended Consequences. And since government enacts many policies involving agriculture, agricultural economists can spend their career writing about this law. One example is regulation of swine manure.
You need a car, so you work overtime to purchase another, and end up buying a 2006 Honda Element, which you like better than your old Accord. Did our destroying your car make you better off? You made more money, but you are clearly not better off. You had to make more money to replace the car you had. ” No. You could have sold the old Accord and purchased the new Element, leaving you exactly as you are now plus with the money you made from the sale. The fact that you did not do this voluntarily indicates that we did not make you happier.
How much more are consumers willing to pay for “traceable beef” relative to other beef? To answer this question, two agricultural economists from Utah State University conducted an experiment. Subjects from all walks of life were invited into a classroom for a free lunch, where they were given beef sandwiches made from nontraceable beef and $15 in cash. Then, the subjects were given the opportunity to bid money to upgrade to a sandwich made from traceable beef. 23 to upgrade to the sandwich made from traceable beef (Dickinson and Bailey 2002).
Agricultural Marketing and Price Analysis by Bailey Norwood, Jayson Lusk