| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Does vertical integration reduce investment reluctance in production chains? An agent-based real options approach
Kann vertikale Integration die Investitionszurückhaltung in Wertschöpfungsketten reduzieren? Ein agentenbasierter Realoptionsansatz
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| Autores: |
Balmann, Alfons
Musshoff, Oliver
Larsen, Karin
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| Data: |
2010-03-17
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| Ano: |
2009
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| Palavras-chave: |
Real options
Supply chain
Agent-based models
Genetic algorithms
Agribusiness
Agricultural and Food Policy
Agricultural Finance
Institutional and Behavioral Economics
Productivity Analysis
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| Resumo: |
This paper uses an agent-based real options approach to analyze whether stronger vertical integration reduces investment reluctance in pork production. A competitive model in which firms identify optimal investment strategies by using genetic algorithms is developed. Two production systems are compared: a perfectly integrated system and a system in which firms produce either the intermediate product (piglets) or the final product (pork). Simulations show that the spot market solution and the perfectly integrated system lead to a very similar production dynamics even with limited information on production capacities. The results suggest that, from a pure real options perspective, spot markets are not significantly inferior to perfectly integrated supply chains.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/59521
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| Relação: |
Humboldt University Berlin>Institute for Agricultural Economics and Social Sciences>Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers
SiAg-Working Paper
05
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| Formato: |
33
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